Correct amount at retirement (after 36 years): , after investing 10% of monthly earnings of $25,600, or $2,560, monthly. 

Answer by greenestamps(13209)   (Show Source): You can put this solution on YOUR website!
 


Tutor @mananth misinterpreted the problem; her interpretation does not make sense.  $2560 invested once and left sitting for 36 years will not provide for a comfortable retirement.


The correct interpretation -- $2560 deposited monthly for 36 years -- gives the answer shown by the other tutor.  You can get that answer by using any of a number of online calculators, or by using the future value annuity formula:





A is the regular deposit amount

i is the (annual) interest rate

n is the number of compounding periods per year

t is the number or years


For your problem,





which works out to $2,259,255.65


That WILL provide for a comfortable retirement....


 

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