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Answer:
Future Value= $158,475.64
Explanation:
Giving the following information:
He saves $500 per month for 15 years and earns 7% by investing in the stock market through an index fund.
I assume we have to determine the value of the investment at the time of retirement.
We need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= monthly deposit= 500
n= 15*12= 180
i= 0.07/12= 0.005833
FV= {500*[(1.005833^180) - 1]} / 0.006833
FV= $158,475.64