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Score: Sorry, you are Incorrect. Answer(s): (Your response(s) are shown below, followed by the correct answer(s).) Bonnie has decided to begin a retirement savings program where she will contribute to an account that will accumulate tax free throughout her working life. She expects to retire in exactly 11 years from today, and her goal is to have accumulated the amount of $900000 when she reaches her future retirement age. In order to meet her goal, she will begin making MONTHLY contributions to a special account devoted to the retirement goal. Contributions to this account will begin one month from today, and she will continue placing equal monthly amounts into her retirement account for the next 11 years. What minimum amount needs to be placed in her account at the end of each month so that she'll reach her goal if the annual interest rate is 6%. $ 24.672771 4830 X Instructions: Place your answer to the nearest dollar. Work all calculations using at least SIX decimal points of accuracy. DO NOT USE A DOLLAR SIGN OR A COMMA IN YOUR ANSWER. Feedback: This future value of an annuity problem requires that you solve for the annuity amount. In this problem you know the future amount to be accumulated, the interest rate, and the time period over which contributions will be made. For example, if the couple would like to contribute monthly and to accumulate $960 in 12 years and if the interest rate is 9%, then the known variables are FVA, r, and n, and the unknown variable is A (the annuity amount). Because monthly contributions will be made, "n" becomes the number of months (144 = 12 times 12) and "Y" becomes the monthly interest rate (-75% = 9%/12): FVA = A (FVIFA months, interest rate) $960 = A (FVIFA, 144, -75%) $960 = A (257.7116) A = $960/257.7116 A = 3.725 Score: Sorry, you are Incorrect. Answer(s): (Your response(s) are shown below, followed by the correct answer(s).) Bonnie has decided to begin a retirement savings program where she will contribute to an account that will accumulate tax free throughout her working life. She expects to retire in exactly 11 years from today, and her goal is to have accumulated the amount of $900000 when she reaches her future retirement age. In order to meet her goal, she will begin making MONTHLY contributions to a special account devoted to the retirement goal. Contributions to this account will begin one month from today, and she will continue placing equal monthly amounts into her retirement account for the next 11 years. What minimum amount needs to be placed in her account at the end of each month so that she'll reach her goal if the annual interest rate is 6%. $ 24.672771 4830 X Instructions: Place your answer to the nearest dollar. Work all calculations using at least SIX decimal points of accuracy. DO NOT USE A DOLLAR SIGN OR A COMMA IN YOUR ANSWER. Feedback: This future value of an annuity problem requires that you solve for the annuity amount. In this problem you know the future amount to be accumulated, the interest rate, and the time period over which contributions will be made. For example, if the couple would like to contribute monthly and to accumulate $960 in 12 years and if the interest rate is 9%, then the known variables are FVA, r, and n, and the unknown variable is A (the annuity amount). Because monthly contributions will be made, "n" becomes the number of months (144 = 12 times 12) and "Y" becomes the monthly interest rate (-75% = 9%/12): FVA = A (FVIFA months, interest rate) $960 = A (FVIFA, 144, -75%) $960 = A (257.7116) A = $960/257.7116 A = 3.725

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