Question
Do not use Excel. Give steps. Set up the problem and use your calculator to assist in solving for the answer. Lisa wants to pay
Do not use Excel. Give steps.
Set up the problem and use your calculator to assist in solving for the answer. Lisa wants to pay $2,200.77 per quarter into her retirement account. Assume the account will have a fixed interest rate of 5.7%.
a. Approximately how long will it take for her account to reach $711,000? (Answer: $30 years, 5 months)
b. How much will the account have earned in total interest? (Hint: Use the TI formula for FVA and use the unrounded decimal value of your answer in a. above to find this.) (Answer: $442,941.20)
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An Introduction to the Mathematics of Financial Derivatives
Authors: Ali Hirsa, Salih N. Neftci
3rd edition
012384682X, 978-0123846822
