math

posted by .

I keep getting an answer with an exponent and i am not sure what i have done wrong here. Any help is appreciated.

To save for his retirement, Jeff puts $800 per month into his savings account every month for 30 years. The savings account pays 9% interest compounded monthly. How much money will he have in his savings account when he retires at the end of those 30 years?

FV=?
i=0.045
n=360
R=800

FV=R[(1+i)^n-1]/i
FV=800[(1+0.045)^360-1]/0.045
FV=800[7618413.852-1]
FV=800(7618412.852)/0.045
FV=1.354384507^11

  • math -

    Your errors include

    i is .09/12=.0075
    I get 1.46million dollars, about.

  • math -

    Thanks for your help.!

  • math -

    Actually, if you do simple math, you would get $25,920. If you want to know how much he will have after cashing it in, just do this.

    I=PRT
    I is the simple interest = 25,920
    P is the Principal = $800
    R is the rate = 9% = 0.09
    T is the time = 30 years = 360 months

    800x0.09x360=25,920

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. accounting

    Mr. Jones intends to retire in 20 years at the age of 65. As yet he has not provided for retirement income, and he wants to set up a periodic savings plan to do this. If he makes equal annual payments into a savings account that pays …
  2. Business

    Mr Jones intends to retire in 20 years at the age of 65. As yet he has not provided for retirement income, and he wants to set up a periodic savings plan to do this. If he makes equal annual payments into savings account that pays …
  3. Finance

    You are planning to save for retirement over the next 15 years. To do this, you will invest $1,100 a month in a stock account and $500 a month in a bond account. The return on the stock account is expected to be 7%, and the bond account …
  4. Finance

    You are planning to save for retirement over the next 15 years. To do this, you will invest $1,100 a month in a stock account and $500 a month in a bond account. The return on the stock account is expected to be 7%, and the bond account …
  5. Math / Finance

    You are planning to save for retirement over the next 15 years. To do this, you will invest $1,100 a month in a stock account and $500 a month in a bond account. The return on the stock account is expected to be 7%, and the bond account …
  6. math

    Dan has saved $500. He wants to open a chequing account at Save-A-Lot Trust or Maple Leaf Savings. Save-A-Lot Trust's chequing account is $10 per month plus $0.75 per cheque. Maple leaf savings' chequing account is $7 per month plus …
  7. economics

    After getting her first job, a college graduate wants to begin saving money so she can pay cash for a new car. She wants to save enough each month to have $21,000 at the end of 4 years, and her savings account pays 4% interest, compounded …
  8. math

    I keep getting the problems wrong? Please help James deposits $6000 into a savings account which pays 1% per annum. If the account compounds monthly, find the amount in the account after 10 years. (ive gotten 6631 but that's wrong)
  9. Math

    thank you for the help. another question. Jim opened a savings account with $5. If his savings account doubles every month, how much will he have at the end of the 8 month. our answer was $1280 1st 5x2=10 2nd 10x2=20 3rd 20x2=40 4th …
  10. Business Math ( Future ordinary Annuities)

    Howard has deposited RM1000 at the end of each month into a retirement savings plan for the last 10 years in his working life. His deposits earned an interest rate of 2.5% per month for the first 4 years and 3% per month for the rest …

More Similar Questions