Question

can someone please help me with the formula for this problem the chart for the problem only goes to 10 years.Carla Lopez deposits 3,000.00 in retirement account the funds have an average of 9% over the 40 tears until her retirement what will be the value of her retirement account

Answer 1

It's not clear to me that the funds are compounding over the 40 years. If we could see the chart that would help.

However, if there is compounding over the period the value would be $94,228

Answer 2

You say that you have a chart that goes to ten years. What is the value at 10 years?

Answer 3

45579

Answer 4

i got the answer but I dont cheat I need to find out the formula for the answer

Answer 5

$45,579 seems big to me unless there is a $3,000 per year contribution over the ten years.

Answer 6

the chart for 10 years at 9% is 15.193 aren't I suppose to multiply the 3000* the 15.193

Answer 7

its only 1 deposit of 3000

Answer 8

Hold on
FV = [ 3,000 ( 1.09 ) ^10 - 1] / .09

Answer 9

what do I do with the 10

Answer 10

Power 10

Answer 11

i am so confused

Answer 12

From 10 years, the future value is $45, 579

Answer 13

Therefore, all you do is to plug in 40 yrs, instead of 10 yrs.

Answer 14

is it 3000*1.09 to the 10th power -1 =

Answer 15

but how

Answer 16

Just plug into your calculator!

Answer 17

once i get the answer to the 10th power do I multiply it by 40 years

Answer 18

No, instead of plug number 10, replace it by 40!

Answer 19

what do you get for the answer I have 3000*1.09-1 = 3269.0o to the 10th power is to much. we have a financial chart that we go by your correct because I see your example on another problem in the book

Answer 20

I don't know what calculator you are using, but mine TI 89 shows:
$1,013, 650

Answer 21

in the book its 15.193 for ten years at 9% what do I mulyiply by the 15.193

Answer 22

For 10 yrs, I got $45,579

Answer 23

I did to but what do I do with it th 45579

Answer 24

It just a test to prove which formula to apply!

Answer 25

I'm still not sure how you came up with your formula. My book says that the future value of a single sum is FVSS=PVSS(1+i)^n.

Answer 26

@marshallinwashington It's the formula specialized for business application!

Answer 27

It's the same formula that my HP12c is using. So yes.

Answer 28

your formula was correct but I don't understand the 40 years do the problem step by step so I can understand I havent been in college for over 20 years just going back FV = [ 3,000 ( 1.09 ) ^10 - 1] / .09 explain this Is fv= 3000*1.09-1 to the 10th power

Answer 29

In order to calculate the retirement after 40 yrs, power to 40:
FV = [ 3,000 ( 1.09 ) ^40 - 1] / .09

Answer 30

oh ok give me 1 min and i will send you the answer and can you check it please

Answer 31

Okie dokey!

Answer 32

do I multiply 1.09 to the 40th power

Answer 33

power, not multiply!

Answer 34

like 2^3 = 8

Answer 35

i thought im suppose to multiply 1.09*40 than multiply the answer by 40 until i do it 40 tmes

Answer 36

Nope, all I do is enter into my calculator:
3000 ( 1.09^40 - 1) / .09

Answer 37

Yes, power 40 means repeated multiply 40 times!

Answer 38

1.09 * 1.09*1.09*1.09*1.09 40 times right

Answer 39

so the shortcut is power! instead of manually multiply!

Answer 40

Did you enter what I showed you into your calculator?

Answer 41

did you get 36925.94

Answer 42

= $1, 013,647.34

Answer 43

how

Answer 44

for 40 yrs

Answer 45

so once I multiply 1.09 40 times then what do I do

Answer 46

do I / by .09

Answer 47

Pls do you know what difference between multiply and power?
2^3 = 8
2 * 3 = 6

Answer 48

yea 1.09 *1.09 40 times right

Answer 49

You need to purchase the right calculator, otherwise the result won't be precisely!

Answer 50

i just pulled up a sciencetific calculator

Answer 51

So use exponent!

Answer 52

i got the same answer as you thank you for being very patient with me and god bless you10136.4734

Answer 53

Just memorize the formula, you'll need it :)

Answer 54

yea I wrote it down thank you thank you thank you very much

Answer 55

I guess that's all I know ;)

Answer 56

You are awesome goodnight

Answer 57

Anyway, just message me when you need help!

Answer 58

ok thank you

Answer 59

Don't forget to click on the blue "Best Answer" as thank you!

Answer 60

Nett-Nett, Chlorophyl's formula is the future value of an annuity. Which means there was a $3,000 deposit each year.

So the high number now makes some sense.