Joe expects to start working immediately after graduation and he is already planning to retire.He wants to retire in twenty-five years and hopes that he will be able to do so comfortably by investing $2,000 at the end of each year throughout this period.If he earns 5% compounded annually,how much will be in his retirement fund in twenty-five years?
A) $95,454.20
B) $54,000.00
C) $169,317.75
D) $102,226.00
E) $76,345.93

Question

Quizplus · Accepted Answer

FV = PMT × 11ea7fdb_fc14_aca3_a768_694c18fd9f15_TB2902_11 FV = 2,000 × 11ea7fdb_fc14_aca4_a768_03b675aea4de_TB2902_11 = $95,454.20
Using a financial calculator:
N = 25, I/Y = 5, PV = 0, PMT = -2,000, cpt FV = $95,454.20

Joe Expects to Start Working Immediately After Graduation and He