Question

Kenneth started saving for retirement at age 40 with plans to retire at age 70. He invested an average of $400 per month in various securities, with an average annual return of 7% adjusted for inflation. Assuming monthly compounding, how much has Kenneth saved at the start of retirement?

do i use the ordinary annuity formula for this? hellpp pleasee

Answer 1

use p(1+r/n)^rt

Answer 2

@elskydiablo thankyouu!!

Answer 3

that didn't work :/

Answer 4

p=40
r=0.07
n=12
t=30
plug it in to the equation

Answer 5

p=400 not 40

Answer 6

answer should be 404.9157239