You are to make monthly deposits of $450 into a retirement account that pays an apr of 10.7 percent compounded monthly. if your first deposit will be made one month from now, how large will your retirement account be in 32 years? (do not round intermediate calculations and round your answer to 2 decimal places,
e.g., 32.16.) retirement account value in 32 years

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tirana tirana · Answer 1 · 2018-10-03T13:57:17+02:00

The retirement account value in 32 years is calculated using the FV function in excel as in =FV(rate,nper,pmt) where

rate (monthly interest rate)= 10.7% = 0.107 = 0.107/12 (Monthly)

nper (number of periods)= 32*12 = 384 months

pmt (Monthly deposit) = 450

The retirement account's value in 32 years =FV(0.107/12,384,450) = 1,475,143.62

Your retirement account will be in 32 years =$1,475,143.62 (Rounded to 2 decimals)