document.write( "Question 498977: You have $1000 to start a retirement account. The 1st month, you deposit $1000, plus your new monthly deposit amount of $150. Then every month you deposit the $150 in a retirement account earning 3.8% interest compounded monthly. If there are 20 years until you retire, how much will you have? How much will you have if you retire in 30 years? \n" ); document.write( "
Algebra.Com's Answer #337281 by Theo(13342)\"\" \"About 
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time point 0 you deposit $1150
\n" ); document.write( "time point 1 through n you deposit $150
\n" ); document.write( "each time point is another year.
\n" ); document.write( "time point 1 is the end of the first year.
\n" ); document.write( "time point 2 is the end of the second year.
\n" ); document.write( "etc.
\n" ); document.write( "the interest rate is 3.8% per year compounded monthly.
\n" ); document.write( "3.8% is .038 annual interest rate.
\n" ); document.write( "divide that by 12 to get .00316666667 interest rate per month.
\n" ); document.write( "you have 2 equations that will provide you with the results you want.
\n" ); document.write( "the first equation is the future value of a present amount.
\n" ); document.write( "the second equation is the future value of a payment.
\n" ); document.write( "those formulas can be found at the following address:
\n" ); document.write( "http://www.algebra.com/algebra/homework/Finance/FINANCIAL-FORMULAS-101.lesson
\n" ); document.write( "those formulas will provide you with the following results after you provide them with the necessary information.
\n" ); document.write( "for 20 years in the future:
\n" ); document.write( "the future value of a present amount formula requires:
\n" ); document.write( "PA = 1150
\n" ); document.write( "i = .00316666667
\n" ); document.write( "n = 12 * 20 = 240
\n" ); document.write( "the future value of a payment formula requires:
\n" ); document.write( "PMT = 150
\n" ); document.write( "i = .00316666667
\n" ); document.write( "n = 12 * 20 = 240
\n" ); document.write( "for 30 years in the future:
\n" ); document.write( "same information except:
\n" ); document.write( "n = 12 * 30 = 360 in both formulas.
\n" ); document.write( "the answers you get should be the following:
\n" ); document.write( "future value of a present amount for 20 years = $2,456 rounded to the nearest dollar.
\n" ); document.write( "future value of a payment for 20 years = $53,797 rounded to the nearest dollar.
\n" ); document.write( "future value of a present amount for 30 years = $3,589 rounded to the nearest dollar.
\n" ); document.write( "future value of a payment for 30 years = $100,475 rounded to the nearest dollar.
\n" ); document.write( "you add the future value of a present amount and the future value of a payment together to get:
\n" ); document.write( "20 year future value = $56,252.86 rounded to the nearest penny.
\n" ); document.write( "30 year future value = $104,064.44 rounded to the nearest penny.
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