SOLUTION: suppose that you set up a new ira that pay an apr of 5% compounded monthly. if you contribute $200 per month for 13 years how much will the ira contain at the end of that time

Question 935854: suppose that you set up a new ira that pay an apr of 5% compounded monthly. if you contribute $200 per month for 13 years how much will the ira contain at the end of that time
Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!
you can solve using an online calculator.
set present value = 0
set future value = 0
set number of pmts = 13 * 12 = 156
set interest per pay period % = 5/12 = .416667
set payment at to end

use the calculator to tell you that fv = $43,821.89

the calculator i used can be found at http://www.arachnoid.com/lutusp/finance.html

that website also shows you the manual formula you would use.
if you use the manual formula, you will be using the interest rate rather than the percent.
interest rate = interest percent divided by 100.

interest percent per month = 5 / 12 = .416667
interest rate per month = .05 / 12 = .00416667

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