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5 October, 14:52

Your employer contributes $80 at the end of each week to your retirement account. The account will earn a weekly interest rate of. 15 percent. How much will the account be worth when you retire in 40 years

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  1. 5 October, 18:21
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    Final Value = $1,151,653.43

    Explanation:

    Giving the following information:

    Weekly contribution = $80

    Weekly interest rate = 0.15 percent.

    Number of years = 40

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

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

    A = weekly deposit = 80

    n = 40*52 = 2,080 weeks

    i = 0.0015

    FV = {80*[ (1.0015^2080) - 1]} / 0.0015

    FV = $1,151,653.43
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