http://ianlafo.com/retired-blythe/
Retired Blythe
Blythe is 40 years old. She is planning on retiring in 25 years. She has opened an IRA with an APR of 3.8%?
she pays on it monthly. If she makes monthly deposits of $500 to the account, how much will she have in the account when she is ready to retire?
$249,762.86
FVoa = PMT [(((1 + i)^n) - 1) / i]
Where:
FVoa = Future Value of an Ordinary Annuity
PMT = Amount of each payment (500)
i = Interest Rate Per Period (0.038 / 12)
n = Number of Periods (12 x 25)
