Question

I keep getting an answer with an exponent and i am not sure what i have done wrong here. Any help is appreciated.

To save for his retirement, Jeff puts $800 per month into his savings account every month for 30 years. The savings account pays 9% interest compounded monthly. How much money will he have in his savings account when he retires at the end of those 30 years?

FV=?
i=0.045
n=360
R=800

FV=R[(1+i)^n-1]/i
FV=800[(1+0.045)^360-1]/0.045
FV=800[7618413.852-1]
FV=800(7618412.852)/0.045
FV=1.354384507^11

Answer 1

Your errors include

i is .09/12=.0075
I get 1.46million dollars, about.

Answer 2

Thanks for your help.!

Answer 3

Actually, if you do simple math, you would get $25,920. If you want to know how much he will have after cashing it in, just do this.

I=PRT
I is the simple interest = 25,920
P is the Principal = $800
R is the rate = 9% = 0.09
T is the time = 30 years = 360 months

800x0.09x360=25,920