An individual is 45 years old. At the end of each month, he deposits $270...
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Calculus
An individual is 45 years old. At the end of each month, he deposits $270 in a retirement account that pays 5.11% interestcompounded monthly.(a) After 9 years, what is the value of the account?(b) If no further deposits or withdrawals are made to the account, what is the value of the account when the individual reachesage 65?(a) For the first 9 years, the individual's deposits form an ordinary annuity because the deposits are made at theendof(1+i)" -FV = PMT20-11should be used. After 9 years, the accountieach period. Therefore, the formuladoes not continue to behave as an annuity and a different formula should be used.After 9 years, the value of the account will be $ 36925.21.(Do not round until the final answer. Then round to the nearest cent as needed.)(b) When the individual reaches age 65, the value of the account will be $.(Do not round until the final answer. Then round to the nearest cent as needed.)
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