document.write( "Question 1200182: Francine currently has $45,000 in her 401k account at work, and plans to contribute $800 at the end of each month for the next 15 years. How much will she have in the account in 15 years, if the account averages a 6% annual return? Assume monthly compounding. \n" ); document.write( "

Algebra.Com's Answer #834411 by MathTherapy(10552) $\"\"$ $\"About$

You can put this solution on YOUR website!

\r\n" );
document.write( "Francine currently has $45,000 in her 401k account at work, and plans to contribute $800 at the end of each month for the next 15 years. How much will she have in the account in 15 years, if the account averages a 6% annual return? Assume monthly compounding. \r\n" );
document.write( "\r\n" );
document.write( "For the $45,000 BEGINNING amount, use the FUTURE VALUE formula of $1: \r\n" );
document.write( "   , where:  = Accumulated amount, or future value (Unknown, in this case)\r\n" );
document.write( "                             = Present Value||Principal invested||INITIAL amount deposited ($45,000, in this case)\r\n" );
document.write( "                             = Annual Interest rate (6%, or .06, in this case)\r\n" );
document.write( "                             = Number of ANNUAL compounding periods (Monthly, or 12, in this case)\r\n" );
document.write( "                             = Time, in years (15, in this case)\r\n" );
document.write( "\r\n" );
document.write( "\r\n" );
document.write( "For the monthly $800 contribution, use the formula for the FUTURE VALUE of an ORDINARY ANNUITY:\r\n" );
document.write( "   , where:   is the future value in the amount of time (years), or the amount that will\r\n" );
document.write( "                                                   be available then (UNKNOWN, in this case)\r\n" );
document.write( "                                              is the payment amount ($800, in this case)\r\n" );
document.write( "                                                is the interest rate, per year (6%, or .06, in this case)\r\n" );
document.write( "                                                is the number of compounding periods per year (12, in this case)\r\n" );
document.write( "                                                is the amount of time the money is invested (15, in this case)\r\n" );
document.write( "\r\n" );
document.write( "You then ADD \"A\" to FV_oa to get the amount in the account after 15 years.

\n" ); document.write( "

\n" );