In order to save for your retirement, you want to save $8,000 every year for 10...

In order to save for your retirement, you want to save $8,000 every year for 10 years, starting one year from now. The annual interest rate on your savings account is 7%.

How much money will you have in your account in 10 years?

Solutions

Expert Solution

Future value of annuity=Annuity[(1+rate)^time period-1]/rate

=8000[(1.07)^10-1]/0.07

=8000*13.816448

which is equal to

=$110531.58(Approx)

jeff jeffy answered 1 year ago

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