Justin is saving for his retirement 21 years from now by setting up a savings plan. He has set up a savings plan wherein he will deposit $147.00 at the end of every three months for the next 13 years. Interest is 6% compounded quarterly. (a) How much money will be in his account on the date of his retirement? (b) How much will Justin contribute? (c) How much will be interest? (a) The future value will be $. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
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Given: PMT = $147 r = 6% = 0.06 n = 4 (quarterly compounding) t = 13 years Plugging in the values: FV = 147 * ((1 + 0.06/4)^(4*13) - 1) / (0.06/4) Show more…
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