Future Value of an Annuity

Nikola just turned $47$ years old and is planning to retire at age $62.$ She has already saved $$202,000\mathrm{.}00$ in her RRSP$.$ If she continues to contribute $$375\mathrm{.}00$ at the beginning of every month, how much $m$

will be in her RRSP at retirement if it can earn $9\%$ compounded monthly? No deposit is made the day she turns $62.$

a$.$ Use the compound interest formula, $FV=PV(1+i{)}^N,$ to find the future value of the current amount in the investment.

At retirement, the $$202,000\mathrm{.}00$ will have grown to $.$

b$.$ Determine the annuity type.

Ordinary Simple Annuity

Ordinary General Annuity

Simple Annuity Due

General Annuity Due

c$.$ Identify the following pieces of information to be used to calculate the future value of the annuity.

Periodic Payment: $PMT=$

Number of Payments per Year: $PY=$

Total Number of Payments: $N=$

Annual Interest Rate: $r=$

Number of Compoundings per Year. $CY=$

d$.$ Determine the total value of the investment at retirement $($incorporating your answer from part a$.$ above$).$