You have just started a new job and plan to save $5,250 per year for 35 years until you retire. You will make your first deposit

Question

1 year ago

13

in one year. How much will you have when you retire if you earn an annual interest rate of 9.47 percent

1 answer:

nasty-shy [4] · Answer 1 · 2023-08-22T10:04:59+03:00

Answer:

FV= $1,260,205.98

Explanation:

Giving the following information:

Annual deposit= $5,250

Number of years= 35 years

Annual interest rate= 0.0947

To calculate the final value, we need to use the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

FV= {5,250*[(1.0947^35)-1] / 0.0947

FV= $1,260,205.98