Question

If you invest $8,500 per period for the following number of periods, how much would you have? b. 50 years at 9 percent.

Short answer

The investor would have $6,928,210.23 after 50 years.

Step-by-step solution

Identification of the required information

Payment (PMT) = $8,500

Period (n) = 50 year

Interest Rate (i) = 9%

Future value (FV)

$$\begin{gathered} \text{FV}\mathbf{=}\text{PMT}\times \left[\frac{{\left(1+i\right)}^n-1}{i}\right] \\ \mathbf{=}\$8,500\times \left[\frac{{\left(1+9\%\right)}^{50}-1}{9\%}\right] \\ \mathbf{=}\$6,928,210.23 \end{gathered}$$