Find the total in the account with the following facts monthly contributions = $180 employer matching 25% interest rate 4.99% years invested 38

The amount that will be in the account after 38 years is $ 36811,05

Step-by-step explanation:

a)

For resolved this exercise used the next equation

R (1 - (1 + i) - -) Ap = ... (1)

Ap = Amount in account

R = Paid monthly

i = Monthly interest rate

t = Months for paid

Dates

i = - 2.05% 12 = 0,1708% = 0.0017

The interest is divided for 12 because is annual and the formula is mensual

t = 15yearsx12 = 180 months

R = 220$

R (1 - (1 + i) - ) Ap =

220 (1 - (1 + 0.0017) - 180) Ap = 0.0017

162,04 Ap=0.0017

Ap = 95321,855

The amount that will be in the account after 15 years is $ 95,321.85

b)

R (1 - (1 + i) - -) Ap = ... (1)

Ap = Amount in account

R = Paid monthly

i = Monthly interest rate

t = Months for paid

i = - 4,99% - = 0,415% = 0.0041

The interest is divided for 12 because is annual and the formula is mensual

t = 38yearsx12 = 456 months

R = 180$

R (1 - (1 + i) - ) Ap =

Ap = 180 (1 - (1 + 0.0041) - 456 0.0041

Ap = 36811,055

The amount that will be in the account after 38 years is $ 36811,05