Question

Your employer contributes $80 at the end of each week to your retirement account. The account will earn a weekly interest rate of .15 percent. How much will the account be worth when you retire in 40 years

Answer 1

Final Value= $1,151,653.43

Step-by-step explanation:

Giving the following information:

Weekly contribution= $80

Weekly interest rate= 0.15 percent.

Number of years= 40

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

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

A= weekly deposit= 80

n= 40*52= 2,080 weeks

i= 0.0015

FV= {80*[(1.0015^2080)-1]} / 0.0015

FV= $1,151,653.43