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?

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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) About Me  (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