Answered Essay: Please show all work and if you know how to enter it in Excel as PMT.

(Future value of an annuity) Upon graduating from college 35 years ago, Dr. Nick Riviera was already planning for his retirement. Since then, he has made deposits into a retirement fund on a monthly basis in the amount of $100. Nick has just completed his final payment and is at last ready to retire. His retirement fund has earned 6 percent compounded monthly. Use five decimal places for the periodic interest rate in your calculations. a. How much has Nick accumulated in his retirement account? b. In addition to this, 10 years ago Nick received an inheritance check for $25,000 from his beloved uncle. fund. What is his current balance in the fund? He decided to deposit the entire amount into his retirement a. The amount Nick has accumulated in his retirement account isS b. The amount the $25,000 inheritance check has accumulated to over 10 years is S(Round to the nearest cent.) The current balance in Nicks retirement fund is (Round to the nearest cent.)

Please show all work and if you know how to enter it in Excel as PMT.

Upon graduating from college 35 years ago, Dr. Nick Riviera was already planning for his retirement. Since then, he has made deposits into a retirement fund on a monthly basis in the amount of $100. Nick has just completed his final payment and is at last ready to retire. His retirement fund has earned 6 percent compounded monthly. Use five decimal places for the periodic interest rate in your calculations. a. How much has Nick accumulated in his retirement account? b. In addition to this, 10 years ago Nick received an inheritance check for $25,000 from his beloved uncle. He decided to deposit the entire amount into his retirement fund. What is his current balance in the fund? a. The amount Nick has accumulated in his retirement account is $ (Round to the nearest cent.) b. The amount the $25,000 inheritance check has accumulated to over 10 years is $ (Round to the nearest cent.) The current balance in Nick’s retirement fund is $ (Round to the nearest cent.)

Expert Answer

 

Answer (a)- This question is of “Future value of Annuity”

Formula- FV = PMT [(1+r)n – 1] / r

Where- FV = Future value, PMT = Present Principal, r = rate of interest, n = number of periods.

Given- PMT = $100, Frequency = Monthly, r = 6% /12 = .5%, n = 35*12 = 420 Periods

Putting all the values in the formula, we get-

FV = 100 [ (1+.005)420 – 1] / .005

FV = 100 * 1424.710298

FV = $142471.0298

Answer (b)- This question is of normal future value-

FV = Present value (1+r)n

Given- PV = $25000, r = 6%, n = 10 years

Putting the values in the formula, we get-

FV = 25000 (1+.06)10

FV = 25000 * 1.790847

FV = $44771.175

Final Answer- The current balance in Nock’s retirement fund is = $142471.0298 + $44771.175

=$187242.2048

Buy Essay
Calculate your paper price
Pages (550 words)
Approximate price: -

Help Me Write My Essay - Reasons:

Best Online Essay Writing Service

We strive to give our customers the best online essay writing experience. We Make sure essays are submitted on time and all the instructions are followed.

Our Writers are Experienced and Professional

Our essay writing service is founded on professional writers who are on stand by to help you any time.

Free Revision Fo all Essays

Sometimes you may require our writers to add on a point to make your essay as customised as possible, we will give you unlimited times to do this. And we will do it for free.

Timely Essay(s)

We understand the frustrations that comes with late essays and our writers are extra careful to not violate this term. Our support team is always engauging our writers to help you have your essay ahead of time.

Customised Essays &100% Confidential

Our Online writing Service has zero torelance for plagiarised papers. We have plagiarism checking tool that generate plagiarism reports just to make sure you are satisfied.

24/7 Customer Support

Our agents are ready to help you around the clock. Please feel free to reach out and enquire about anything.

Try it now!

Calculate the price of your order

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

HOW OUR ONLINE ESSAY WRITING SERVICE WORKS

Let us write that nagging essay.

STEP 1

Submit Your Essay/Homework Instructions

By clicking on the "PLACE ORDER" button, tell us your requires. Be precise for an accurate customised essay. You may also upload any reading materials where applicable.

STEP 2

Pick A & Writer

Our ordering form will provide you with a list of writers and their feedbacks. At step 2, its time select a writer. Our online agents are on stand by to help you just in case.

STEP 3

Editing (OUR PART)

At this stage, our editor will go through your essay and make sure your writer did meet all the instructions.

STEP 4

Receive your Paper

After Editing, your paper will be sent to you via email.