Question

Pat has a Keogh retirement plan (this type of plan is tax-deferred until money is withdrawn). If deposits of $10,000 are made each year into an account paying 8% compounded annually, how much will be in the account after 23 years? What will be the total amount of interest earned? The amount in the account after 2 years is $ (round to the nearest cent, as needed). The amount of interest earned is s (round to the nearest cent, as needed).

Answer 1

It is ordinary anuuity. (1) We have r=rate per period R = periodic payment n=number of periods A = Future value(accumulated value) We are given r=8% yearly = 8/(1*100)yearly R = $ 10000 n = 23 years = 23 years A = ? using below formula A = $ 608932.96 answer total amount paid = $ 230000 interest received = $ 378932.96 answer Note: the formula used is

It is ordinary anuuity. We have r=rate per period R = periodic payment n=number of periods A = Future value(accumulated value) We are given r = 7% yearly = 7/(4*100) quaterly R = ? n = 3 years = 12 quarterly A = $ 24000 Using below formula, we get R=$ 1814.73 answer total amount paid = $ 21776.76 interest received = $ 2223.24 answer Note: the foumula used is R = (ltr)-1

A=$ 21000 rable = 2 800 n=2549=50 PZA(1425" = 21000 (1+ b) = $4290.95 Answer