Question

You
are 26 years old and decide to start saving for your retirement.
You plan to save $6,000 at the end of each year (so the first
deposit will be one year from now), and will make the last deposit
when you retire at age 65. Suppose you earn 6% per year on your
retirement savings, how much will you have saved for retirement
right at age 65? (Round to the nearest dollar.)

Answer #1

Savings are done for 39 years

Future Value of Annuity =

where r is the rate of Return for compounding period = 6%

n is the no of compounding period i.e. 39 years

=

= 6000*145.058458122

= 870,350.75

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