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5 January, 20:37

Find the total in the account with the following facts monthly contributions = $180 employer matching 25% interest rate 4.99% years invested 38

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  1. 5 January, 20:51
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    The amount that will be in the account after 38 years is $ 36811,05

    Step-by-step explanation:

    a)

    For resolved this exercise used the next equation

    R (1 - (1 + i) - -) Ap = ... (1)

    Ap = Amount in account

    R = Paid monthly

    i = Monthly interest rate

    t = Months for paid

    Dates

    i = - 2.05% 12 = 0,1708% = 0.0017

    The interest is divided for 12 because is annual and the formula is mensual

    t = 15yearsx12 = 180 months

    R = 220$

    R (1 - (1 + i) - ) Ap =

    220 (1 - (1 + 0.0017) - 180) Ap = 0.0017

    162,04 Ap=0.0017

    Ap = 95321,855

    The amount that will be in the account after 15 years is $ 95,321.85

    b)

    R (1 - (1 + i) - -) Ap = ... (1)

    Ap = Amount in account

    R = Paid monthly

    i = Monthly interest rate

    t = Months for paid

    i = - 4,99% - = 0,415% = 0.0041

    The interest is divided for 12 because is annual and the formula is mensual

    t = 38yearsx12 = 456 months

    R = 180$

    R (1 - (1 + i) - ) Ap =

    Ap = 180 (1 - (1 + 0.0041) - 456 0.0041

    Ap = 36811,055

    The amount that will be in the account after 38 years is $ 36811,05
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