Question

Alec, Daniel, William, and Stephen decide today to save for retirement. Each person wants to retire by age 70 and puts $9, 200 into an account earning 9% compounded annually. (EV of $1, PV of $1, EVA of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided. Round your answers to 2 decimal places.) Required: Calculate how much each person will have accumulated by the age of 70.

Answer 1

Each person will have accumulated $383,3916.7

Step-by-step explanation:

The amount to have been accumulated will be equal to the future value of the

the 9,200 deposited at the rate of 9% per annum.

FV = A× (1+r)^n

A- amount deposited - 9,200, r- rate =9%, n-number of years - 70

FV = 9,200× (1.09)^70

FV = $383,3916.7

Each person will have accumulated $383,3916.7

Answer 2

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