If you make an initial contribution of $6,000 to a retirement account 5 years from now and make annual contributions of $6,000 thereafter, after how many contributions will your balance have reached at least $900,000 if your account earns 5.5% annual interest?

Future value of annuity due=$900,000

Annuity amount=$6,000

r=5.5%

Calculate, by using the following formula

$900,000=$6,000 x ((((1+5.5%)^n)-1)/5.5%) x (1+ 5.5%)

Answer rating: 100% (QA)

First lets simplify the formula 900000 6000 x 155n155 x 1 55 900000 6000 x 1055n10055 x 1055 900000 ... View the full answer