1. An investor decides to deposit an amount of $27,000 into an account to save for retirement. He is currently 47 years old, and he plans to retire at age 60. The account earns an annual effective interest rate of 6%,

   Questions

2. a) What is the accumulated value of the investment at age 60?
   b) The investor makes another deposit at age 52 in the amount of $10,000. What is the total value of the account at age 60?
   c) The investor wants the account balance to be $90,000 by the time he reaches age 60. If he will make one more deposit to the fund at age 55, how much should that deposit be? d) The investor reaches his goal of having $90,000 accumulated at age 60. If, at age 60, he decides to leave the funds invested until they reach $100,000, how much longer must he leave the funds in the account?

Answer rating: 100% (QA)

To solve these questions we can use the formula for the accumulated value of an investment with compound interest Accumulated Value Principal 1 Intere... View the full answer