Question

PLEASE HELP ASAP
When he was 35, Keene began investing $250 per month in various securities for his retirement savings. His investments averaged a 7.5% annual rate of return until he retired at age 60. What was the value of Keene’s retirement savings when he retired? Assume monthly compounding of interest.

$259,315.22

$336,861.36

$877.26

$219,315.22

Answer 1

@ankit042

Answer 2

@mathstudent55

Answer 3

Are you familiar with the amortization formula?

Answer 4

no

Answer 5

If someone puts in each month $A, and for n months at annual interest of i%, then the final amount is P.
where
\( P = \frac{A(R^n-1)}{(R-1)} \)
where
P=final amount
R=1+interest rate per month (1+7.5%/12 = 1.00625)
n=number of months before he retires = 25*12

Answer 6

Did you get the answer?

Answer 7

http://www.wolframalpha.com/input/?i=P%3D%28250%281.00625%5E%2825*12%29-1%29%29%2F%281.00625-1%29 <--- THE ANSWER !