You are planning to make monthly deposits of $340 into a retirement account that pays 9 percent...
Question:
You are planning to make monthly deposits of $340 into a retirement account that pays 9 percent interest compounded monthly. If your first deposit will be made one month from now, how large will your retirement account be in 35 years? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.) Future value$
Future Value of Cash flows:
Future value of an investment refers to the value of that investment at the later date compounded at the given rate of return. Future value is helpful in comparing multiple investment with cash flows at different times.
Answer and Explanation: 1
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View this answera. The future value is $1,000,206.72
- Monthly deposit, A = $340
- Rate of interest per month = 9% / 12 = 0.0075
- Number of payments, n = 35 * 12 = 420
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How to Calculate Future Value: Formula & Example
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Chapter 5 / Lesson 16
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Understand the definition of future value and the future value formula. Explore some examples that show how to calculate the future value of an investment.
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