Question

if you make 35 annual payments at the end of the year in the amount of $2500 in an account which returns 8% nominal what will be in the account in 35 years?

Answer 1

Information provided:

Time= 35 years

Interest rate= 8%

Annual payments= $2,500

The value in the account in 35 years is computed by calculating the future value.

Th below must be entered in a financial calculator to compute the future value:

N= 35

I/Y= 8

PMT= 2,500

Press the CPT key and FV to calculate the future value.

The answer obtained is 430,792.

Therefore, the value in the account in 35 years is $430,792.

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