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3) (2 pts) Larry would like to retire in 20 years. He currently has $150,000 in his retirement account and is planning on depositing an additional $800 each month in his retirement account. If Larry can earn an average APR of 7% per year compounded monthly, how much money will be in his retirement account after 20 years?
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Nper(number of periods) 20*12 240 months Rate per month(R)-7%/12 Present value(PV) 150000 Monthly payment(Pmt) 800 Compute the Future value(FV) at the time of the retirement FV 150000) Function Arguments FV 0.005833333 Rate 7%/12 Nper 240 Pmt 800 TI - 240 1800 Pv 150000 1150000 Type number 1022552.155 Returns the future value of an investment based on periodic, constant payments and a constant interest rate.

Therefore, the amount available after the retirement of 20 years is $1,022,552 in his account.

Note: Please use excel function FV which is available in financial function to arrive at the answer.

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