Question
Could you solve these with explanations? thank you! 1) An investor contributes $467.00 per quarter in an account that pays 3.36% APR with quarterly compounding.
Could you solve these with explanations? thank you!
1) An investor contributes $467.00 per quarter in an account that pays 3.36% APR with quarterly compounding. The first contribution will be made next quarter. What is the future value of this account in 14.00 years?
2) A salesman with a marketing degree from the business school wants to retire at the age of 50. This is exactly 23.00 years from today. To retire at 49, the salesman believes he will need $3,004,063.00 in savings. He wants to start a mutual fund and will make annual payments into the fund. His first contribution will be today (annuity due) and his last contribution will be when he turns 47. (25.00 total payments). He thinks he can earn 7.00% per year on average on his invested funds.
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