Choose a scenario of savings in a retirement plan such as a 401(k) or an annuity. Plan a monthly deposit (you choose the amount, but be realistic) for 5 years into an account that will earn interest at 5%. Find the future value for this account. Calculate the amount of interest earned on this account.
$115 every week so $460.00 monthly or 5,520/year. On the fifth year, at 5% interest, my 401K will earn a future value of:
FV of annuity = annuity payment x table value
Then, calculate that same monthly investment amount for 30 years. Calculate the future value of the investment after the 30 years. Calculate the amount of interest on this account as well.
FV of annuity = annuity payment x table value
Book used: BUSINESS MATH
Tenth Edition
CHERYL CLEAVES
Southwest Tennessee Community College
MARGIE HOBBS
Southwest Tennessee Community College
JEFFREY NOBLE
Madison College