Question

an employer will do a 50% match on your investment to a 401k retirement plan. If you decide to contribute a monthly amount of $220,how much should be in the account after 15 years? The interest rate is fixed at 2.05%.

Answer 1

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=R(1-(1+i)∧-t)

             i

Ap=220(1-(1+0.0017)∧-180)

                       0.0017

Ap=162,04

      0.0017

Ap=$95,321.85

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