Question

Suppose you invest $120 a month for 8 years into an account earning 9% compounded monthly. After 8 years, you leave the money, without making additional deposits, in the account for another 21 years. How much will you have in the end? Suppose instead you didn't invest anything for the first 8 years, then deposited $120 a month for 21 years into an account earning 9% compounded monthly. How much will you have in the end? Get help: Video

Answer 1

Page No O Answer Case ! Fulime value atter & yons = p[1+ (%)]*_ / P - $120 6 = 8 years 0 = 9% ne la (compounded monthly 12x8 Felaine valse after 8 years e 190 *[[ 1 + 94) ** - ] 20 x 1 + = 120 X (1+(35803,96 – 1 (7.5*10*3 = 120 x (1.0075196 - 1 (715x1043) = 120.1.048921228 7.5X103 = 16789,34 La Folwe value = $16789, 74

Page No ③ The al years, money is left for another P: 16782.74 079% = 0.09 n . 12 its 21 years 12x21 Amount of money in the end = plet + 16780.44* {1+ 9.00) = 16482.44 x 6160075) 252 = 110310:46 1. Amount of money in the end - A = $110310.46 Case a Initially no money is deposited for first 8 years $ 1Q0 is deposited for next 21 years .:P 120 t = 2 years ne ja (compounded monthly

Page, No ③ OS9% = 0.09 (1 + ion) 41 Future value ,FV a PX ! 0:09 2112 = 120 X 0.09 = 100x. (1+ 7.5 8103)***, (7.581003) 2120 x (1.0075)@501 45X103 51542851387 715X10 3 120 x = 89165.62 1. Future Value ,FV = $89165.622