× Didn't find what you were looking for? Ask a question

Top Posters
Since Sunday
40
29
21
13
9
9
9
8
8
8
8
8
wrote...
Express Lane Plus
Posts: 357
Rep: 0 0
5 months ago
 Find the final amount in the following retirement account, in which the rate of return on the accoun 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. $596 per month invested at 4%, compounded monthly, for 3 years; then$738 per month invested at 5%, compounded monthly, for 3 years. What is the amount in the account after 6 years?\$?  (Do not round until the final answer. Then round to the nearest dollar as needed.) Read 108 times 1 Reply
Related Topics
Replies
wrote...
Educator
5 months ago
 Let's begin with the first 3 years$$4%$$ to decimal $$\rightarrow \ 0.04$$Because it's compounded monthly, divide $$i$$ by 12 and multiply $$n$$ by 12$$i=\frac{0.04}{12}=\frac{1}{300}$$$$n=3\cdot 12=36$$ periodsAmount after 3 years = $$\frac{596\left[(1+i)^{36}-1\right]}{i}$$Substitute what $$i$$ is equal to:$$\frac{596\left[\left(1+\frac{1}{300}\right)^{36}-1\right]}{\frac{1}{300}}=22756.211$$Let's continue now with the last 3 years$$\frac{738\left[\left(1+\frac{0.05}{12}\right)^{36}-1\right]}{\frac{0.05}{12}}=28599.961$$Lastly, you sum up: $$22756.211 + 28599.961$$ and round = 51356.17
 The best way to say thank you is with a positive review:   https://trustpilot.com/review/biology-forums.com  Your support goes a long way!▶ Make a note request here
Explore
Post your homework questions and get free online help from our incredible volunteers.
Save Time
196 People Browsing