Any help with this question would be so great full!! At the age of 30 you decide

Question

Any help with this question would be so great full!!      At the age of 30 you decide to start saving money. At first you can only afford to deposit $200 per month. However, at the age of 38 you are able to deposit $300 per month. Then at the age of 45 you raise your monthly deposit again to $500 per month. Finally at the age of 50 you get promoted to president of the company and are able to deposit $2000 per month into the account. Assuming your account is earning (prime interest rate + 4%) in interest, compounded monthly, how much do you have in your account at the age of 70? Hint: Treat each time that you change the deposit amount as a seperate annuity, and compute the future value (FV) on each annuity seperately. Assume that each annuity earns compound interest during the time it is not receiving deposits

Explanation / Answer

Age 30to 38, saving $200 per month for 8 years at 4% compound monthly = 23k
Age 38 to 45, saving 300 per month for 7 years at 4% compound monthly = 29k
Age 45 to 50, saving $500 per month for 5 years at 4% compound monthly = 33k
Age 50 to 70, saving $2000 per month for 20 years at 4% compound monthly = 734k

Total amount = 23k + 29k + 33k + 734k = 819k.

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