Suppose a salesman invests his $12,500 bonus in a fund that earns 10.8%, compounded monthly. Suppose also

Question:

Suppose a salesman invests his $12,500 bonus in a fund that earns 10.8%, compounded monthly. Suppose also that he makes contributions of $150 at the end of each month to this fund.
(a) Find the after 1212 years.
(b) If after the 1212 years, the fund is used to set up an annuity, how much will it pay at the end of each month for the next 10 years?
Problems are complex financial problems that require skills from several sections.
Future Value
Future value (FV) is the value of a current asset at a future date based on an assumed rate of growth. The future value (FV) is important to investors and financial planners as they use it to estimate how much an investment made today will be worth...