SOLUTION: You deposit $40,000 into a retirement account at the age of 20, making an average of 8% annual return. How much will you have at the age of 65?

Question 1036405: You deposit $40,000 into a retirement account at the age of 20, making an average of 8% annual return. How much will you have at the age of 65?
Answer by Aldorozos(172) (Show Source): You can put this solution on YOUR website!
This is called the Future Value problem. FV=PV(1+r)^n where PV is the present value (40000). R is the rate (8%) and n is the number of years (65-20=45).
Use the following calculator
http://www.investopedia.com/calculator/fvcal.aspx

to get $1,276,817.98
RELATED QUESTIONS
You deposit $50,000 into a retirement account at the age of 20, making an average of 8%... (answered by addingup)

If you made $3,000 a year in contributions to your retirement account starting at the age (answered by addingup,MathTherapy)

A. For all parts of this problem, money is invested in a retirement account with an APR... (answered by math_tutor2020)

A. For all parts of this problem, money is invested in a retirement account with an APR... (answered by Theo)

Suppose you want to have $300,000 for retirement in 20 years. Your account earns 9%... (answered by ikleyn)

Mr. Khaild will receive $8,500 a year for the next 15 years from his trust. If a 7... (answered by ikleyn)

How much would you need to deposit in an account at the end of each month in order to... (answered by Theo)

A. For all parts of this problem, money is invested in a retirement account with an APR... (answered by Theo)