Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. Justin is saving for his retirement 25 years from now by setting up a savings plan. He has set up a savings plan wherein

1. Justin is saving for his retirement 25 years from now by setting up a savings plan. He has set up a savings plan wherein he will deposit $ 115.00 at the end of every six months for the next 14 years. Interest is 8 % compounded semi dash annually. (a) How much money will be in his account on the date of his retirement? (b) How much will Justin contribute? (c) How much will be interest? (a) The future value will be $_____? (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (b) Justin will contribute $_____? (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (c) The interest will be $_____ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

Please do not use ai

Step by Step Solution

There are 3 Steps involved in it

Step: 1

To solve this problem we can use the future value formula for an annuity with compound interest FV P ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Entrepreneurship

Authors: Andrew Zacharakis, William D Bygrave

5th Edition

1119563097, 9781119563099

More Books

Students also viewed these Finance questions