Question

VII- Your couple and you have decided to put aside $7,500 a year for retirement. Assuming that you can earn 9% interest on your investment, what would be the total amount in your account after 32 years?

Answer 1

Future Value of ordinary annuity = $\frac{(1+r)^n-1}{r}\times7500$

=$\frac{(1+0.09)^(32)-1}{0.09}\times7500$

= 1230277.40