Question: Problem 5 - 2 5 Calculating Annuity Future Values [ LO 1 ] You make $ 6 , 0 0 0 annual deposits into a

Problem

5 - 25

Calculating Annuity Future Values

[

1]

You make $

6, 000

annual deposits into a retirement account that pays an APR of

10.9

percent compounded monthly. Your first deposit will be one year from today. How large will your account balance be in

34

years?

Hint: The compounding period is monthly, but the payments are made yearly. Calculate the EAR interest rate compounded monthly, and your payments and interest rate will be the same unit measurements.

Note: Do not round intermediate calculations and round your answer to

2

decimal places, e

.

., 32.16 .

Problem 5-25 Calculating Annuity Future Values [LO 1] You make $6,000

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