Question

Suppose that between the ages of 25 and 40 you put $2000 per year in a...

Suppose that between the ages of 25 and 40 you put $2000 per year in a retirement fund and the company that you work for puts in $1000 per year. At an interest rate of 7.1% compounded annually, how much is this account worth after 15 years?
Now suppose when you’re 40 you change jobs but you keep this account, how much will be in this account when you are ready to retire at 65?

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Answer #1

$81364.20 at the end of 15 years of depsoiting $2000 and $1000. Working as below:

At age 65 this amount would be = 81364.18441 (1.071)25 = $452032.9014.

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