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BaLLatris [955]
2 years ago
5

an employer will do a 50% match on your investment to a 401k retirement plan. If you decide to contribute a monthly amount of $2

20,how much should be in the account after 15 years? The interest rate is fixed at 2.05%.
Mathematics
1 answer:
faltersainse [42]2 years ago
6 0

Answer:

The amount that should be in the account after 15 years is $95,321.85

Step-by-step explanation:

According to the given data, we have the following:

monthly amount of $220=R

interest rate is fixed at 2.05%. We require the monthly ineterest rate, hence monthly interest rate= 2.05%/12=0.1708%=0.0017

t=15years×12=180 months

In order to calculate how much should be in the account after 15 years, we would have to use the following formula:

Ap=<u>R(1-(1+i)∧-t)</u>

             i

Ap=<u>220(1-(1+0.0017)∧-180)</u>

                       0.0017

Ap=<u>162,04</u>

      0.0017

Ap=$95,321.85

The amount that should be in the account after 15 years is $95,321.85

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