You are planning to make monthly deposits of $370 into a retirement account that pays 9 percent interest compounded monthly. If your first deposit will be made one month from now, how large will your retirement account be in 35 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.)

Final Value = $733,755

Explanation:

Giving the following information:

You are planning to make monthly deposits of $370 into a retirement account that pays 9 percent interest compounded monthly. Your retirement is in 35 years.

Effective rate = 0.09/12 = 0.0075

n = 35*12 = 420

A = monthly deposit = 370

We need to use the following formula of Final Value:

FV = {A*[ (1+i) ^n-1]}/i

FV = {370*[ (1.0075^370) - 1]}/0.0075 = $733,755