A newspaper editor starts a retirement savings plan in which $325 per month is deposited at the beginning of each month into an account that earns an annual interest rate of 6.8% compounded monthly. Find the value of this investment (in dollars) after 20 years. (Round your answer to the nearest cent.)
A newspaper editor starts a retirement savings plan in which $325 per month is deposited at the beginning of each month into an account that earns an annual interest rate of 6.8% compounded monthly. Find the value of this investment (in dollars) after 20 years. (Round your answer to the nearest cent.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A newspaper editor starts a retirement savings plan in which $325 per month is deposited at the beginning of each month into an account that earns an annual interest rate of 6.8% compounded monthly. Find the value of this investment (in dollars) after 20 years. (Round your answer to the nearest cent.)
Expert Solution
Step 1: Introduction:
The worth of a current asset at some point in the future based on an estimated rate of growth is known as future value (FV). For investors and financial planners, the future value is crucial because they use it to predict how much an investment made now will be worth in the future.
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