John makes $2,800 per month and has an opportunity to invest $150 per month at an APR of 4.5% in a 401K plan through work. He plans to retire in 30 years.

Question

How much money will he deposit into the 401K over the 30 years?

Answer:

$54000

Step-by-step explanation:

Since every month he will be depositing $150 and a year has 12 months, then each year he will be depositing 12*150=$1800

For 30 years, this will be given as 30*1800=$54000

Therefore, the amount deposited after 30 years will be $54000