Homework Answers
FV of Annuity(35th birthday) = Annual Deposit * [{(1 + r)n - 1} / r]
= $600 * [{(1 + 0.076)12 - 1} / 0.076]
= $600 * [1.4085 / 0.076]
= $600 * 18.5329 = $11,119.76
Value of Fund(at retirement) = FV of Annuity(35th birthday) * (1 + r)n
= $11,119.76 * (1 + 0.076)(65-35)
= $11,119.76 * 9.0026
= $100,106.82
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