Question
To save for their retirement, a couple deposits $4000 in
an account that pays 5.9% annual interest compounded
quarterly. What will be the value of their investment
after 20 yr?
an account that pays 5.9% annual interest compounded
quarterly. What will be the value of their investment
after 20 yr?
Answers
Reiny
What is 4000(1+.059/4)^80 ?
(that would take them through about 1/4 of the first year of their retirement)
I hope you mean that they deposit $4000 every quarter year for 20 years.
if that is the case they would have
4000 (1 + .059/4)^80 - 1)/(.059/4)
= $603 782.77
(that's more like it)
(that would take them through about 1/4 of the first year of their retirement)
I hope you mean that they deposit $4000 every quarter year for 20 years.
if that is the case they would have
4000 (1 + .059/4)^80 - 1)/(.059/4)
= $603 782.77
(that's more like it)