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please answer all parts i attached example An individual is 43 years old. Atthe end of each month, he deposits $35!] in a retirement account
please answer all parts i attached example
An individual is 43 years old. Atthe end of each month, he deposits $35!] in a retirement account that pays 5.04% interest compounded monthly. [a] After 9 years, what is the value of the account? [b] It no further deposits or withdrawals are made to the account. what is the value of the account when the individual reaches age 65? [a] For the first 9 years, the ind ividual's deposits form an ordinary annuity because the deposits are made at the end of each period. Therefore, the tot'mula (1 + i)" 1 FV=PMT|: i ] should be used. After 9 years, the account does not continue to behave as an annuity and a different fonTIula should be used. Atter 9 years. the value of the account will be Sim. [Do not round until the nal answer. Then round to the nearest cent as needed} An individual is 43 years old. At the end of each mohth, he deposits $270 in a retiremerlt account that pays 4.85% interest compounded monthly. [3} After 12 yea rs. what is the value of the account? [b] If no further deposits or withdrawals are made to the account, what is the value of the account when the individual reaches age 65? {a} For the rst 12 years, the individual's deposits form an orcnary annuity? because the deposits are made atthe end ' ot each period. Therefore, the 1 +i " 1 formula F'ur =PMT|:%:| should be used. Alter 12 years, the account does not conrm? to behave as an annuity and a different formula should be used. After '12 years, the value of the account will be 5 52613.59'. (Do not round until the nal answer. Then round to the nearest cent as needed.) [b] When the individual reaches age 65, the value of the account will be 5 6?,99128'. (Do not round until the nal answer. Then round to the nearest cent as needed.) V \\ [EStep by Step Solution
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