SOLUTION: A client opens an Annuity with monthly payments of $300, and a guaranteed return of 3.5%. Determine the total amount after 30 years. In order to accumulate the same amount with the
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Question 994104: A client opens an Annuity with monthly payments of $300, and a guaranteed return of 3.5%. Determine the total amount after 30 years. In order to accumulate the same amount with the same rate and time, how much will the client need to deposit in one lump sum?
Answer by solver91311(24713) (Show Source): You can put this solution on YOUR website!
You failed to indicate the compounding frequency, so
^{30}-1}{0.035}\right\]\ \leq\ FVA\ \leq\ 300\left(\frac{e^{0.035*30}\ -\ 1}{e^{0.035}\ -\ 1}\right))
John
My calculator said it, I believe it, that settles it
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