Question

You plan to save $370 per month starting today for the next 46 years "just to start the month off right." You feel that you can earn an interest rate of 9.7 percent compounded monthly. How much will there be in the account 46 years from today

Answer 1

Answer:

You plan to save $370 per month starting today for the next 46 years at an interest rate of 9.7% will be $791046.3155

Explanation:

Rate = 9.7% / 12 = 0.808333%

Number of periods = 30 * 12 = 360

Future value = ( 1 + r) * Monthly payments * [ ( 1 + r)n - 1] / r

Future value = ( 1 + 0.00808333) * 370 * [ ( 1 + 0.00808333)360 - 1] / 0.00808333

Future value = 1.00808333 * 370 * 2,120.819723

Future value = $791046.3155