Answer:
Kindly check explanation
Explanation:
Given the following :
Monthly Payment (PMT) = 200 at the end of each period
interest rate = 2.9% = 0.029/12 = 0.0024166
Period (n) = 43 years x 12 = 516
Using the future value(FV) of an ordinary annuity:
FV = PMT[(1 + r)^n - 1] / r
FV = 200[(1 + 0.0024166)^516 - 1] / 0.0024166
FV = 200[(1.0024166)^516 - 1] / 0.0024166
FV = 200(2.4745372) / 0.0024166
FV = 204,794.93
Amount which will be in saving plan towards retirement = $204,794.93
Interest amount :
$204,794.93 - total monthly deposits
$204,794.93 - (200 * 516)
$204,794.93 - $103,200
= $101,594.93