Question

in order to save for your retirement you want to save $3000 every year for 14 years starting one year from now. the annual interest rate on your savings account is 7%. jow much monry will uou have in your account in 14 years?

Answer 1

Amount saved each year for retirement = $3000

Calculating the Future Value of amount saved using Future value of Ordinary annuity formula:-

Where, C= Periodic amount saved =$3,000

r = Periodic Interest rate = 7%

n= no of periods = 14

Future Value = $67,651.46

So, money in account after 14 years is $67,651.46

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