Question

You just won $90,000 on a scratch-off lottery ticket. You plan to save the money in a retirement account expected to return 6% per year. If you intend to retire in 45 years, how much are these lottery winnings expected to be worth when you retire

Answer 1

about 1.24 million dollars

Step-by-step explanation:

Account value is multiplied by 1.06 each year, so after 45 years, it has been multiplied by 1.06^45. The value is ...

$90,000 × 1.06^45 = $1,238,814.97