Title: Find the final amount in the following retirement account, in which the rate of return on the ... Post by: Catracho on Oct 14, 2018 Find the final amount in the following retirement account, in which the rate of return on the account and the regular contribution change over time.
$247 per month invested at 6%, compounded monthly, for 5 years; then $651 per month invested at %7, compounded monthly, for 5 years. what is the amount in the account after 10 years? (Do not round until the final answer. Then round to the nearest dollar as needed.) Title: Re: Find the final amount in the following retirement account, in which the rate of return on the ... Post by: bio_man on Oct 14, 2018 I think here you do the annuity thing twice, then add them:
\(A=\frac{R\left[\left(1+\frac{r}{n}\right)^t−1\right]}{\frac{r}{n}}\) 1st R = regular deposit/payment \(\rightarrow\) 247 r = interest rate \(\rightarrow\) 6% or 0.06 n = compounding periods per year \(\rightarrow\) 12 t = total number of deposits \(\rightarrow\) 12 * 5 = 60 2nd R = regular deposit/payment \(\rightarrow\) 651 r = interest rate \(\rightarrow\) 7% or 0.07 n = compounding periods per year \(\rightarrow\) 12 t = total number of deposits \(\rightarrow\) 12 * 5 = 60 \(A_T=\frac{247\left[\left(1+\frac{0.06}{12}\right)^{60}−1\right]}{\frac{0.06}{12}}+\frac{651\left[\left(1+\frac{0.07}{12}\right)^{60}−1\right]}{\frac{0.07}{12}}\) \(A_T=17233.19754+46606.97897\) \(A_T=63840.176\) Round to nearest cent: |