Suppose you put $800 per month into a Roth IRA, that pays 8% APR (compounded monthly). Assume you have nothing saved today, calculate the future value of the retirement account 30 years from today. (Enter a positive value and round to 2 decimals)

Future Value = $1,192,287.56

Explanation:

The future value is the expected total sum that an investment is suppose to accumulate together with interest over a period of time at a particular interest rate.

Where compounding is done done monthly, he future value is determined as follows:

FV = PV * ((1+r) ^n - 1) / r

FV - Future Value, PV - present value r - monthly rate of interest, n - number of months

FV - ?

r - 8%/12 = 0.66%

n - 30 * 12 =

PV - 800

FV = 800 * ((1.00666) ^ (360) - 1) / 00666

= 800 * 1490.359449

= $1,192,287.56