Advanced Algebra w/ Financial Apps help.. I solved the problem but I must be doing something wrong.

Question

anonymous · Answer

Question:

 Larry is 32 years old and starting an IRA (individual retirement account). He is going to invest $250 at the beginning of each month. The account is expected to earn 3.5% interest, compounded monthly. How much money, rounded to the nearest dollar, will Larry have in his IRA if he wants to retire at age 58?

anonymous · Answer

Answers:

 $177,075

$176,560

$127,316

$126,946

anonymous · Answer

My work: 

[FV=PV(1+i)^{nt}\]

250(1+0.035)^12*26

250(1.035)^312

250(45855.25)

FV=11,463,814.34

But that's not an answer choice.. what am I doing wrong? :/

anonymous · Answer

@texaschic101 can you help?

anonymous · Answer

@$w3G_Godd

anonymous · Answer

@$w3G_Godd  HALPPPP

anonymous · Answer

ew ok hold on lol

anonymous · Answer

yeah its hard i know lol. i just dont understand what im doing wrong? i even tried using an online future value calculator.

anonymous · Answer

PV = 250 
FV = future value (unknown) 
i = annual interest rate = 0.035 
i(m) = monthly interest rate = 1.035^(1/12) - 1 
v = 1/(1+i(m)) = monthly discount factor 
n = # of months = 312 

FV = 250 * [(1+i(m))^n - 1] / (1 - v) 
FV = $126,276.64 

This is using interest theory / actuarial notation. To use on a BAII or other financial calculator, use these as the inputs for your TVM keys: 

N = 312 
I/Y = i(m) x 100 = 0.287089872 
PV = 0 
PMT = -250 

Then you compute FV.

anonymous · Answer

does this help :(

anonymous · Answer

So the future value would be $126,276.64?

That isnt one of the answer choices though.. am I just being retarded right now?

anonymous · Answer

nevermind yes it is. im retarded and i was looking at a different question. @$w3G_Godd  THANK YOU

anonymous · Answer

aha your welcome ;)

anonymous · Answer

well wait the first part is right the 126 but not the 276? OH GOD WHY IS THIS HAPPENING

anonymous · Answer

and ur not retarded lol :P

anonymous · Answer

idk this question is making my brain hurt lol

anonymous · Answer

Yeah me too lol this whole class makes my brain hurt. :c

anonymous · Answer

aww that sucks lol i hope u get it hold on let me try one more time

anonymous · Answer

250 * 1.035 ^ (26 * 12) 
At age 58, Larry would have approximately $11, 463, 814 
(More exact amount: $11, 463, 814.34)

dont ask , me lmao

anonymous · Answer

^ yeah i tried that one from yahoo answers xD

anonymous · Answer

lmao ya thts where i got it xP