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Ricardo is 30 years old. He plan to retire when he is 60. He has opened a retirement account that pays 3,5% interest compounded monthly. If he makes monthly
deposits of $400, how much will he have in the account by the time he retires?

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sqdancefan

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Answer:

  $254,165

Step-by-step explanation:

Assuming payments are made to the account at the end of the month, the balance is the sum of a geometric series with first term 400 and common ratio (1+0.035/12). The sum of 360 payments will be ...

  400((1+0.035/12)^360 -1)/(0.035/12) ≈ $254,165

Ricardo will have about $254,165 in his retirement account after 30 years.

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