(Q9 IN TYPE B) HOW MUCH CAN BE ACCUMULATED FOR RETIREMENT IF $2,000...

Question

4. (Q9 in Type B) How much can be accumulated for retirement if $2,000 is deposited annually, beginning today, and the account earns 9% interest compounded annually for 40 years? A) $ 17,558. B) $506,824. C) $552,438.  D) $802,876 Solution C. Use you calculator PMT = 1,500 r = 9% , t = 40, find FV = 506,824 But payment starts immediately -> annuity DUE = 506,824 x 1.09 = $552,438.

Answer

4. (Q9 in Type B) How much can be accumulated for retirement if $2,000 is deposited annually, beginning today, and the account earns 9% interest compounded annually for 40 years? A) $ 17,558. B) $506,824. C) $552,438.  D) $802,876 Solution C. Use you calculator PMT = 1,500 r = 9% , t = 40, find FV = 506,824 But payment starts immediately -> annuity DUE = 506,824 x 1.09 = $552,438.

(Q9 IN TYPE B) HOW MUCH CAN BE ACCUMULATED FOR RETIREMENT IF $2,000...

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