Planning to make monthly deposits

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Reference no: EM131835462

1. You are planning to make monthly deposits of $90 into a retirement account that pays 8 percent interest compounded monthly. If your first deposit will be made one month from now, how large will your retirement account be in 29 years?

a) $1,473,816.26

b) $116,677.12

c) $112,283.21

d) $128,958.92

e) $122,818.02

2 You're trying to save to buy a new $210,000 Ferrari. You have $34,000 today that can be invested at your bank. The bank pays 6.0 percent annual interest on its accounts. How long will it be before you have enough to buy the car?

a) 31.50 years

b) 29.25 years

c) 31.25 years

d) 31.00 years

e) 31.75 years

Reference no: EM131835462

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