Annuities
posted by Scott Ingraham on .
You are earning an average of 46500 and will retire in 10 years. If you put 20% of your gross average income in an ordinary annuity compounded at 7% annually, what will be the value of the annuity when y ou retire? I am not sure how to figure this out and what it will be. I am using the calculato to figure this out. Can someone get me started here. Thanks

Amount = .2(46500((1.07)^10  1)/.07
Using the formula
Amount = payment((1+i)^n  1)/i 
I am trying to do this by calculator here and not sure how to do it

Sn = R[(1+i)^n  1]/i
Assuming you mean 20% per year going into the retirement fund
Sn = 9300[(1.07)^10  1]/.07 =