SOLUTION: Evelyn starts a retirement fund 10 years before retirement. She pays $100 per month into the annuity for 10 years. Her total investment is $12,000. Esther starts a retirement fund

Question 1127927: Evelyn starts a retirement fund 10 years before retirement. She pays $100 per month into the annuity for 10 years. Her total investment is $12,000. Esther starts a retirement fund 20 years before retirement. She pays $50 per month into the annuity for 20 years. Her total investment is $12,000. Lois starts a retirement fund 30 years before retirement. She pays $25 per month into the annuity for 30 years. Her total investment is $9,000. In each case the annuities pay 8% interest compounded monthly.
(a) Find the value of each annuity at the time of retirement. (Round your final answers to two decimal places.)
Evelyn $
Esther $
Lois $

Answer by ikleyn(52799) (Show Source): You can put this solution on YOUR website!
.

Evelyn   FV =  = $18294.60.


Esher    FV =  = $29451.02.


Lois     FV =  = $37258.99.

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