Annuity question

Question

Jason is 25 yrs has started working full time. He has started to put money aside for his retirement at age 63.he has calculated that he can afford $75 a month in an account that earns 6.5% compounded monthly.
How much will he have when he retires?

Answer 1

Future Value of an Ordinary Annuity:

 

     FV_A = PMT [(1 + i)ⁿ -1]/i

 

     FV_A is:  75 [(1 + 0.005416)^{12 * 38 = 456} ]/0.005416

 

     FV_A is:  $148,780.09 (regular calculator); for HP12-C:  $149,567.57