To save money for retirement, you make payments into your 401k of $50.00 each month earning an annual interest rate of 12% compounded How much will be in the account after 45 years? What is the total interest earned on this investment? Round to the nearest cent (or 2 decimal places). Do not include dollar sign or commas.
Added by Ashley M.
Close
Step 1
Step 1: The monthly interest rate is 12%/12 = 1%. Show more…
Show all steps
Your feedback will help us improve your experience
Jen H and 81 other Algebra educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
Your employer automatically puts 5 percent of your salary into a 401(k) retirement account each year. The account earns 9% interest. Suppose you just got the job, your starting salary is $55,000, and you expect to receive a 3.5% raise each year. For simplicity, assume that interest earned and your raises are given as nominal rates and compound continuously. Find the value of your retirement account after 25 years. Value = $
Jen H.
An employee contributes $50 each month to her 401(k). What will be the value of her 401(k) after the 360th deposit (30 years) if the per annum rate of return is assumed to be 12% compounded monthly? The value will be $ (Round to the nearest cent as needed.)
Vishal P.
Between the ages of 22 and 37, you deposit $300 per month into a 401K and your employer matches your contributions dollar for dollar. The interest rate is 6% compounded monthly. a.) What is the value of your 401K after 15 years? b.) Suppose you resign from your position after 15 years with the company, but your money remains in the account and continues to earn interest at the same rate. With no further deposits, how much will be in the account when you retire at age 67? c.) What is the difference between the amount of money in the 401K and the amount you contributed? Round to two decimal places. Include a dollar sign and a comma to separate thousands and millions, if needed.
Keondre P.
Recommended Textbooks
Elementary and Intermediate Algebra
Algebra and Trigonometry
Transcript
18,000,000+
Students on Numerade
Trusted by students at 8,000+ universities
Watch the video solution with this free unlock.
EMAIL
PASSWORD