Question 1169702
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Eugene began to save for his retirement at age 29, and for 11 years he put $ 500 per month 
into an ordinary annuity at an annual interest rate of 9% compounded monthly. 
After the 11 years, Eugene was unable to make the monthly contribution of $ 500, 
so he moved the money from the annuity into another account that earned 12% interest compounded monthly. 
He left the money in this account for 25 years until he was ready to retire. 
How much money did he have for retirement?
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Solve it in two steps.


First, determine future value FV1 of the account after first 11 years.  
Use the standard formula for the ordinary annuity

    FV1 = {{{500*((1+0.09/12)^(11*12)-1)/((0.09/12)))}}} = 112,087.42 dollars.


Next, find future value FV2 of this amount, $112,087.42, in the another account that earned 12%
annual interest rate, compounded monthly

    FV2 = {{{112087.42*(1+0.12/12)^(12*25)}}} = {{{112087.42*1.01^300}}} = $2,218,038.13.


<U>ANSWER</U>.  Eugene will have $2,218,038.13 for retirement.
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Solved.