SOLUTION: Evelyn starts a retirement fund 10 years before retirement. She pays $100 per month into the annuity for 10 years. Her total investment is $12,000. Esther starts a retirement fund

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Question 1127927: Evelyn starts a retirement fund 10 years before retirement. She pays $100 per month into the annuity for 10 years. Her total investment is $12,000. Esther starts a retirement fund 20 years before retirement. She pays $50 per month into the annuity for 20 years. Her total investment is $12,000. Lois starts a retirement fund 30 years before retirement. She pays $25 per month into the annuity for 30 years. Her total investment is $9,000. In each case the annuities pay 8% interest compounded monthly.
(a) Find the value of each annuity at the time of retirement. (Round your final answers to two decimal places.)
Evelyn $
Esther $
Lois $

Answer by ikleyn(52794) About Me  (Show Source):
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Evelyn   FV = 100%2A%28%28%281%2B0.08%2F12%29%5E%2810%2A12%29-1%29%2F%28%280.08%2F12%29%29%29 = $18294.60.


Esher    FV = 50%2A%28%28%281%2B0.08%2F12%29%5E%2820%2A12%29-1%29%2F%28%280.08%2F12%29%29%29 = $29451.02.


Lois     FV = 25%2A%28%28%281%2B0.08%2F12%29%5E%2830%2A12%29-1%29%2F%28%280.08%2F12%29%29%29 = $37258.99.

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On Ordinary Annuity saving plans,  see the lessons
    - Ordinary Annuity saving plans and geometric progressions
    - Solved problems on Ordinary Annuity saving plans
in this site.

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When you learn from these lessons,  you will be able to do similar calculations in semi-automatic mode.