Follow us:

### 6.4 Savings & Retirement Plans

<
>
• Math Help

To find a balance in an increasing annuity using your calculator, apply the following steps for the formula

1. Divide r by 12 and add 1.
2. Raise to the nth power.
3. Subtract 1.
4. Divide by (r /12).
5. Multiply by M.
6. Round to the nearest cent.
• Consumer Suggestion

To learn more about the different types of retirement plans that are available to you and read some good tips on how to start and manage a retirement plan, check out the Department of Labor's website.

• Checkpoint Solution
1. The balance after 45 years at 4%, compounded monthly, is

2. The balance after 45 years at 6%, compounded monthly, is

3. The balance after 45 years at 8%, compounded monthly, is

• Comments (1)

These comments are not screened before publication. Constructive debate about the information on this page is welcome, but personal attacks are not. Please do not post comments that are commercial in nature or that violate copyright. Comments that we regard as obscene, defamatory, or intended to incite violence will be removed. If you find a comment offensive, you may flag it.
When posting a comment, you agree to our Terms of Use.

``` __   _     ______    ______   _    _     _____
| || | ||  /_   _//  /_   _// | || | ||  |__  //
| '--' ||   -| ||-     | ||   | || | ||    / //
| .--. ||   _| ||_    _| ||   | \\_/ ||   / //__
|_|| |_||  /_____//  /__//     \____//   /_____||
`-`  `-`   `-----`   `--`       `---`    `-----`

```
Showing 1 comments
Subscribe by RSS
Ron Larson (author)9 years ago |
Isn't this example amazing? This is a characteristic of exponential growth. By changing the rate of growth just slightly, you can change the final amount greatly.
0
©Larson Texts, Inc. All Rights Reserved.