If a person starts investing $100 per month starting at age 21, and that money earns a 5% return every year, how much will this person have when turning 70 years old? For ease of calculation, assume starting balance of $0 and annual contributions of $1,200 (12*$100).

Respuesta :

The formula of the future value of an annuity ordinary isFv=pmt [((1+r)^(n)-1)÷r]Fv future value?PMT yearly payment 1200R interest rate 0.07N time 49 years (70-21)
Fv=1,200×(((1+0.07)^(49)−1)÷(0.07))Fv=454,798.80
Hope it helps!