"kirk started saving for retirement at age 50 with plans to retire at age 70. he invested an average of $300 per month in various securities, with an average annual return of 4% adjusted for inflation. assuming monthly compounding, how much has kirk saved at the start of retirement? "

The answer is FV = $110,032.39

Explanation:

Monthly Savings, P = $300

Saving period = 70 - 50 = 20 years

Number of months of savings, n = 20 * 12 = 240 Months

Annual interest rate = 4% = 0.04

Monthly interest rate, r = 0.04/12 = 0.0033

The formula for finding FV is as follows. Just by putting data in it, we can find the answer.

FV = P { (1+r) ^ n-1) / r }

FV = 300 { (1+0.04/12) ^ 240-1) / 0.04/12 }  

FV = $110,032.39