document.write( "Question 1202733: 1) You're setting up an annuity \r
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Algebra.Com's Answer #837805 by ikleyn(52781)\"\" \"About 
You can put this solution on YOUR website!
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One and ONLY ONE problem/question per post.

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\n" ); document.write( "\n" ); document.write( "Comment from student : My apologies. If I can limit the above to one question,
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document.write( "    \"You're setting up an annuity to save for retirement in 32 years. \r\n" );
document.write( "    The monthly deposit is to be $525, with an annual interest rate of 5.4%, \r\n" );
document.write( "    how much will you have when you retire?\" \r\n" );
document.write( "    The answer i've come up with I believe is wrong, but it's $537,553.86\r\n" );
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\n" ); document.write( "\n" ); document.write( "My response: \r
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\n" ); document.write( "\n" ); document.write( "        As the problem is worded, printed and presented, it is incorrect.
\n" ); document.write( "        To be correct, the problem must say that the deposits are made at the end of each month
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\n" ); document.write( "\n" ); document.write( "        So, although it is not said in the problem, I will assume that it is so.\r
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document.write( "It is a classic Ordinary Annuity saving plan. The general formula is \r\n" );
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document.write( "    FV = \"P%2A%28%28%281%2Br%29%5En-1%29%2Fr%29\",    (1)\r\n" );
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document.write( "where  FV is the future value of the account;  P is your monthly payment (deposit); \r\n" );
document.write( "r is the monthly percentage yield presented as a decimal; \r\n" );
document.write( "n is the number of deposits (= the number of years multiplied by 12, in this case).\r\n" );
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document.write( "Under the given conditions, P = 525;  r = 0.054/12;  n = 12*32 = 384.  \r\n" );
document.write( "So, according to formula (1), you get at the end of the 32-th year\r\n" );
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document.write( "    FV = \"525%2A%28%28%281%2B0.054%2F12%29%5E%2812%2A32%29-1%29%2F%28%280.054%2F12%29%29%29\" = \"525%2A%28%28%281%2B0.054%2F12%29%5E384-1%29%2F%28%280.054%2F12%29%29%29\" = $537553.86.    ANSWER\r\n" );
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\n" ); document.write( "\n" ); document.write( "On Ordinary Annuity saving plans,  see the lessons\r
\n" ); document.write( "\n" ); document.write( "    - Ordinary Annuity saving plans and geometric progressions\r
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\n" ); document.write( "\n" ); document.write( "The lessons contain  EVERYTHING  you need to know about this subject,  in clear and compact form.\r
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\n" ); document.write( "\n" ); document.write( "When you learn from these lessons,  you will be able to do similar calculations in semi-automatic mode.\r
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\n" ); document.write( "\n" ); document.write( "To make such complicated calculations as they are in this problem,
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\n" ); document.write( "\n" ); document.write( "Ideal choice is MS Excel, if you have it in your computer.\r
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\n" ); document.write( "\n" ); document.write( "Then you write a formula in a text editor, copy-paste it
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\n" ); document.write( "\n" ); document.write( "If you have no MS Excel in your computer, you may find similar
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\n" ); document.write( "\n" ); document.write( "www.desmos.com/calculator\r
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\n" ); document.write( "\n" ); document.write( "It allows you to do the same thing: you write a formula in a text editor,
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\n" ); document.write( "\n" ); document.write( "Comment from student : Thank you so much! The problem doesn’t me toon compounding or if the deposit is made
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\n" ); document.write( "\n" ); document.write( "My response : I understand it perfectly.\r
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\n" ); document.write( "\n" ); document.write( "From the distance of thousand miles, it is clear from the first glance
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