You plan to retire in 30 years and you are investing $250 per month in the BMO Large-Cap Growth mutual fund. The fund has an average annual return of 13.45%. How much will you h…

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asked Oct 14, 2021 98.7k views

1 Answer

Kenny Basuki · Answer 1 · 2021-10-20T11:18:32+0000

Accumulated Balance is given by :

A=P((1+i)^n-1)/(i)* (1+i)

Here,

n = time period = 30×12 = 360.

i=(13.45)/(100)* (1)/(12)=0.0112

P = principal price = $250.

Putting all given values in above equation, we get :

$A=250* ((1+0.0112)^(360)-1)/(0.0112)* (1+0.0112)\\\\A=\$1221659.48$

Hence, this is the required solution.