Suppose a recent college graduate's first job allows her to deposit $100 at the end of each month in a savings plan that earns 12%, compounded monthly. This savings plan continues for 6 years before new obligations make it impossible to continue. If the accrued amount remains in the plan for the next 15 years without deposits or withdrawals, how much money will be in the account 21 years after the plan began? (Round your answer to the nearest cent.) $
Suppose a recent college graduate's first job allows her to deposit $100 at the end of each month in a savings plan that earns 12%, compounded monthly. This savings plan continues for 6 years before new obligations make it impossible to continue. If the accrued amount remains in the plan for the next 15 years without deposits or withdrawals, how much money will be in the account 21 years after the plan began? (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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Transcribed Image Text:Suppose a recent college graduate's first job allows her to deposit $100 at the end of each month in a savings plan that earns 12%, compounded monthly. This savings plan continues for 6 years before new obligations make it impossible to continue. If the
accrued amount remains in the plan for the next 15 years without deposits or withdrawals, how much money will be in the account 21 years after the plan began? (Round your answer to the nearest cent.)
$
Expert Solution
Step 1: Given Information:
Here,
| Particulars | Values |
| Monthly deposit | $100.00 |
| Interest rate | 12.00% |
| No. of compounding periods | 12.00 |
| Time period | 6.00 |
| Future value of money in the account at the end of 21 years | ? |
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