Solve the problem.
-Suppose you contribute $50 per month into a fund that earns 6.34% annual interest. What is the value of your investment after 29 years?
A) $49,754.30
B) $89,557.73
C) $64,680.59
D) $39,803.44

Question

Quizplus · Accepted Answer

The correct answer is A because the value of the investment after 29 years is $49,754.30. This can be calculated using the formula A = P(1 + r/n)^(nt), where A is the future value of the investment, P is the present value of the investment, r is the annual interest rate, n is the number of times per year that the interest is compounded, and t is the number of years. In this case, P = $50, r = 6.34%, n = 12 (since the interest is compounded monthly), and t = 29. Plugging these values into the formula, we get A = $50(1 + 0.0634/12)^(12*29) = $49,754.30.

Solve the Problem. -Suppose You Contribute $50 Per Month into a Fund That