carla franz deposits $15,000 a year into her retirement account. if these funds have an average earning of 8…

carla franz deposits $15,000 a year into her retirement account. if these funds have an average earning of 8 percent over the 30 years until her retirement, what will be the value of her retirement account? note: do not round intermediate calculations. round your final answer to the nearest whole number. future value of retirement account

carla franz deposits $15,000 a year into her retirement account. if these funds have an average earning of 8 percent over the 30 years until her retirement, what will be the value of her retirement account? note: do not round intermediate calculations. round your final answer to the nearest whole number. future value of retirement account

Answer

Explanation:

Step1: Identify the formula

We use the future - value of an ordinary annuity formula $FVA = A\times\frac{(1 + r)^{n}-1}{r}$, where $A$ is the annual payment, $r$ is the interest rate per period, and $n$ is the number of periods. Here, $A=$15000$, $r = 0.08$, and $n = 30$.

Step2: Calculate $(1 + r)^{n}$

$(1 + 0.08)^{30}=10.06265689$.

Step3: Calculate $(1 + r)^{n}-1$

$10.06265689-1 = 9.06265689$.

Step4: Calculate $\frac{(1 + r)^{n}-1}{r}$

$\frac{9.06265689}{0.08}=113.2832111$.

Step5: Calculate $FVA$

$FVA=15000\times113.2832111 = 1699248.167$.

Answer:

$1699248$