Asked by Scott Ingraham

You are earning an average of 46500 and will retire in 10 years. If you put 20% of your gross average income in an ordinary annuity compounded at 7% annually, what will be the value of the annuity when y ou retire? I am not sure how to figure this out and what it will be. I am using the calculato to figure this out. Can someone get me started here. Thanks
Answered by Reiny
Amount = .2(46500((1.07)^10 - 1)/.07

Using the formula

Amount = payment((1+i)^n - 1)/i
Answered by Scott Ingraham
I am trying to do this by calculator here and not sure how to do it
Answered by tchrwill
Sn = R[(1+i)^n - 1]/i

Assuming you mean 20% per year going into the retirement fund

Sn = 9300[(1.07)^10 - 1]/.07 =
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