You are starting your new career today after graduating from University of Houston. You decided to contribute $500 a month into a fund that is expected to earn 6 percent, compounded monthly. If you start the contribution a month from today for 30 years, how much will you have right after you contribute the last $500 in 30 years? Round to the nearest cent. Do not include any unit (If your answer is $111.11, then type 111.11 without $ sign.)

Final Value= $502,257.52

Explanation:

Giving the following information:

You decided to contribute $500 a month into a fund that is expected to earn 6 percent, compounded monthly. You start the contribution a month from today for 30 years.

To calculate the final value, we need to use an alternative version of the final value formula:

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

A= annual deposit= 500

n= 30*12= 360

i= 0.06/12= 0.005

FV= {500*[(1.005^360)-1]}/0.005= $502,257.52

you will have $2593.74 in 10 years if you set aside $1,000 at 10%

you will have $9321.91 in 20 years if you set aside $2000 at 8%

you will have $1469.32 in 5 years if you set aside $1000 at 8%

you will have $1296.87 in 10 years if you set aside $500 at 10%

you will have $239.66 in 15 years if you set aside $100 at 6%

you will have $4660.96 in 20 years if you set aside $1000 at 8%

they work in some type of way