If a person starts investing $100 per month starting at age 21, and that money earns a 7% return every year, how much will this person have when turning 70 years old? For ease of calculation, assume starting balance of $0 and annual contributions of $1,200 (12*$100
Accepted Solution
A:
The formula of the future value of an annuity ordinary is Fv=pmt [((1+r)^(n)-1)÷r] Fv future value? PMT yearly payment 1200 R interest rate 0.07 N time 49 years (70-21)