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1 September, 16:52

You have just started a new job and plan to save $5,250 per year for 35 years until you retire. You will make your first deposit in one year. How much will you have when you retire if you earn an annual interest rate of 9.47 percent

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  1. 1 September, 17:32
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    FV = $1,260,205.98

    Explanation:

    Giving the following information:

    Annual deposit = $5,250

    Number of years = 35 years

    Annual interest rate = 0.0947

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

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

    A = annual deposit

    FV = {5,250*[ (1.0947^35) - 1] / 0.0947

    FV = $1,260,205.98
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