You decide to save $1,000 at the end of each year for the next20 years....

You decide to save $1,000 at the end of each year for the next 20 years. If your savings earn an annual interest rate of 2%, how much will you have saved up by the end of 20 years? Round to the nearest cent.

Expert Solution

Information provided:

Yearly saving= $1,000

Time= 20 years

Interest rate= 2%

The question is solved by calculating the future value.

Enter the below in a financial calculator to compute the future value:

PMT= 1,000

N= 20

I/Y= 2

Press the CPT key and FV to compute the future value.

The value obtained is 24,297.37.

Therefore, I will have saved $24,297.37 by the end of 20 years.

jeff jeffy answered 2 years ago

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Question

You decide to save $1,000 at the end of each year for the next20 years....

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