SOLUTION: Suppose that you save for retirement by contributing the same amount each month from your 23rd birthday until your 65th birthday, in an account that pays a steady 5% annual interes

Question 1168937: Suppose that you save for retirement by contributing the same amount each month from your 23rd birthday until your 65th birthday, in an account that pays a steady 5% annual interest compounded monthly.
a) How much will be in your fund at age 65 if you save $ 100 a month?
b) How much will be in your fund if you get a steady return of 7.5% compounded monthly?
c) How much will be in your fund if you get a steady return of 10% compounded monthly? (This is comparable to the average annual return of about 11% for all stocks on the New York Stock Exchange from 1950 to 2000
Answer by ikleyn(52799) (Show Source): You can put this solution on YOUR website!
.

Apply the standard formula for ordinary annuity.

RELATED QUESTIONS
Suppose that you save for retirement by contributing the same amount each month from your (answered by solver91311)

Suppose that you save for retirement by contributing the same amount each month from your (answered by ikleyn)

I asked this question a few days ago and I am waiting for an answer. I hope I will get... (answered by stanbon)

Many young people do not start saving right away for retirement, although by the time... (answered by stanbon)

Person A plans for retirement by depositing $2 000 per year in a superannuation fund... (answered by Theo)

You are about to set up a new retirement savings account that earns interest at a 3.5%... (answered by ikleyn)

If you start contributing to your retirement account at the age of 18 with $25 a month... (answered by Theo)

You expect to retire in 25 years. After you retire, you want to be able to withdraw... (answered by math_tutor2020)