contestada

Scenario #1: Raul

Raul is a saver. He sets aside $100 per month during his career of 40 years to prepare for retirement. He does not like the idea of investing because he prefers to minimize his risk as much as possible, so he puts his money in a savings account which earns 1.

5% interest per year.

Respuesta :

vzc

Answer:

Compound Interest Answer: £704

The future value of his money will be $296,410,476,278,794

Data;

  • Principal = $100
  • Time = 40 years
  • rate = 5% = 0.05

How Much Has He Saved

To solve this problem, we have to use the future value of annuity.

This is given by

[tex]fv= P * \frac{[(1+i)^n] -1}{i}[/tex]

Let's substitute the values and solve

[tex]fv = 100 * \frac{[(1 + 0.05)^4^8^0 - 1)}{0.05} \\fv = 296410476278794[/tex]

The future value of his money will be $296,410,476,278,794

Learn more on future value of annuity here;

https://brainly.com/question/5303391

Otras preguntas