Question

To save for retirement, you deposit $719.58 at the end of every month. If you make these payments for the next 46 years while you work, and the interest rate is 12.78%, how much will you have in your retirement account when you go to retire? That is, immeidately after the last payment is made

Answer =

Cash flow =

r =

n =

Answer 1

Balance in retirement account when you go to retire is   $ 2,35,17,463.16

Future value of cash flow	=	Monthly cash flow	*	Future value of annuity of 1
	=	$                 719.58	*	32682.207898
	=	$ 2,35,17,463.16
Working:
Future value of annuity of 1	=	(((1+i)^n)-1)/i		Where,
	=	(((1+0.010667)^552)-1)/0.010667		i	=	12.8%/12	=	0.010667
	=	32682.2079		n	=	46*12	=	552