An insurance agent has been attempting to convince you to purchase an savings plan towards your retirement but you are not convinced of its value. After all, you are young, and have many years to prepare for this. He proposes that you save $325 at the beginning of every month for 30 years, in an account that pays 12% annual interest, compounded monthly. Required:a) Calculate the value of your savings at the end of 30 years.Please answer this question showing all working.

solution given Saving at beginning of month (P) 325 Number of years 30 Interest rate…

Answered: a) Calculate the value of your savings…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 39P

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An insurance agent has been attempting to convince you to purchase an savings plan towards your retirement but you are not convinced of its value. After all, you are young, and have many years to prepare for this. He proposes that you save $325 at the beginning of every month for 30 years, in an account that pays 12% annual interest, compounded monthly.

Required:

a) Calculate the value of your savings at the end of 30 years.

Please answer this question showing all working.

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