An individual is 45 years old. At the end of each month, he deposits $270 in a retirement account that pays 5.11% interest

Question

An individual is 45 years old. At the end of each month, he deposits $270 in a retirement account that pays 5.11% interest
compounded 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 reaches
age 65?
(a) For the first 9 years, the individual's deposits form an ordinary annuity because the deposits are made at the
end
of
(1+i)" -
FV = PMT
20-11
should be used. After 9 years, the account
i
each period. Therefore, the formula
does 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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