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$370 per month starting today for the next 46 years just to start the month off right. She thinks that she can earn an interest rate of 9.7 percent compounded monthly. How much will there be in the account 46 years from today

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beritop1089

Answer:

$3,909,580.9

Explanation:

This is an annuity Due type of question. Using a financial calculator on beginning( BGN) mode, input the following;

Duration; N= 46*12 = 552

Monthly interest rate; I = 9.7%/12 = 0.81%

Monthly payment; PMT = -370

Present value; PV = 0

then compute future value; CPT FV = $3,909,580.95

Therefore, she will have $3,909,580.95 in the account 46 years from today.

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