SOLUTION: Suppose that you save for retirement by contributing the same amount each month from your 23rd birthday until your 65th birthday, in an account that pays a steady 5% annual interes
Algebra ->
Customizable Word Problem Solvers
-> Finance
-> SOLUTION: Suppose that you save for retirement by contributing the same amount each month from your 23rd birthday until your 65th birthday, in an account that pays a steady 5% annual interes
Log On
Question 1168937: Suppose that you save for retirement by contributing the same amount each month from your 23rd birthday until your 65th birthday, in an account that pays a steady 5% annual interest compounded monthly.
a) How much will be in your fund at age 65 if you save $ 100 a month?
b) How much will be in your fund if you get a steady return of 7.5% compounded monthly?
c) How much will be in your fund if you get a steady return of 10% compounded monthly? (This is comparable to the average annual return of about 11% for all stocks on the New York Stock Exchange from 1950 to 2000 Answer by ikleyn(52799) (Show Source):
