Question

Assume you are saving for retirement. You expect to retire in 50 years. If you put $10,000 in a savings account with an annual interest rate of 2%, how much will you have by the time you retire? Answers below are rounded to the nearest thousand. a. $27k d. $22k b. $11k c. $20k

Answer 1

Explanation:

Use compounding formula

10 000 ( 1 + .02)^50 = 26,915 .02 is interest rate 50 is years

= $27k