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A retirement account is opened with an initial deposit of $8,500 and earns 8.12%

Chapter 6, Problem 5

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QUESTION:

A retirement account is opened with an initial deposit of $8,500 and earns 8.12% interest compounded monthly. What will the account be worth in 20 years?

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QUESTION:

A retirement account is opened with an initial deposit of $8,500 and earns 8.12% interest compounded monthly. What will the account be worth in 20 years?

ANSWER:

Problem 5

A retirement account is opened with an initial deposit of $8,500 and earns 8.12% interest compounded monthly. What will the account be worth in 20 years?

                                                             Step by Step Solution

Step 1 of 3

Given,

P - principal starting amount=$8500

T-time measured in years=20

r-annual percentage rate=0.0812

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