SOLUTION: Beginning at age 35, Yoshi paid $400 per month into an ordinary annuity that paid 5.4% interest. As retirement age approached, Yoshi wanted to know the amount of the annuity at sev

Algebra ->  Finite-and-infinite-sets -> SOLUTION: Beginning at age 35, Yoshi paid $400 per month into an ordinary annuity that paid 5.4% interest. As retirement age approached, Yoshi wanted to know the amount of the annuity at sev      Log On


   

Question 1127923: Beginning at age 35, Yoshi paid $400 per month into an ordinary annuity that paid 5.4% interest. As retirement age approached, Yoshi wanted to know the amount of the annuity at several different ages to help plan when to retire. Help Yoshi by finding the amount of the annuity when Yoshi is the following ages. (Round your final answer to two decimal places.)
(a) 65 years old
$

(b) 66 years old
$

(c) 67 years old
$

(d) 68 years old
$

(e) 69 years old
$

(f) 70 years old
$

Answer by Boreal(15235) About Me  (Show Source):
You can put this solution on YOUR website!
P=p(1+.054/12)^360-1/(.054/12)
=400*896.61 (but use unrounded and round at end)
=$358645.35
for age 65
for age 70 use 420 for the exponent
=400*1242.525=$497,010.08
The other ones will be 12 more months in the exponent from 360 to 420.