Answer to Question #330536 in Finance for Kelsey Jand

Question #330536

Use the compound interest calculator to answer the questions. Here are a few things to do when using the calculator:


Calculator Link: https://www.investor.gov/financial-tools-calculators/calculators/compound-interest-calculator


The Initial Investment will be the same as the Monthly Contribution.


Set the Compound Frequency to Annually.


Round all monetary answers to the nearest whole dollar.



Raul is a saver. He sets aside $100 per month during his career of 40 years to prepare for retirement. He does not like the idea of investing because he prefers to minimize his risk as much as possible, so he puts his money in a savings account which earns 1.5% interest per year.



What is the total balance in the account after 40 years?


How much of the total did Raul contribute himself?


How much money did Raul make through compound interest in this savings account?


Identify one way Raul could have increased the total amount of money he made over the 40 years. Explain your reasoning.

0
Service report
It's been a while since this question is posted here. Still, the answer hasn't been got. Consider converting this question to a fully qualified assignment, and we will try to assist. Please click the link below to proceed: Submit order

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be the first!

Leave a comment

LATEST TUTORIALS
New on Blog
APPROVED BY CLIENTS