SOLUTION: You invest $250 in your savings account at the end of each year and earn an average of 6% per year in interest. How much will you have in your savings account at the end of forty y

Question 31437: You invest $250 in your savings account at the end of each year and earn an average of 6% per year in interest. How much will you have in your savings account at the end of forty years?
My problem is not from a textbook but from an online personal finance course.
Answer by mukhopadhyay(490) (Show Source): You can put this solution on YOUR website!
You will need to apply the formula A = P(1+r)^t where A is accumulated money after t years at the rate of r% per year compounded
So, Accumulated Money = 250(1+.06)^40 .. gives you the answer
If interest rate is simple, the formula is A = P(1+rt). In that case Accumulated money would have been 250(1+.06*40)
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