Question

You are planning to make monthly deposits of $190 into a retirement account that pays 13 percent interest compounded monthly. If your first deposit will be made one month from now, how large will your retirement account be in 16 years?

How to do it in a financial calculator?

Answer 1

Future value of annuity= payment per period * [(1+i)^n-1]/i

i = interest rate per period

n = number of periods

=>

Future value = 190 * [(1+0.13/12)^192 - 1]/(0.13/12)

= 121286.01