You have just turned 20 and decided to begin saving $750 quarterly for your retirement. If...

You have just turned 20 and decided to begin saving $750 quarterly for your retirement. If you average 9.0% annual return on your account, how much will you have accumulated when you retire at age 65? (round to nearest penny)

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Expert Solution

Amount to be invested = $ 750 per quarter

Annual Return = 9% i.e Quarterly return = 9%/4 = 2.25% per quarter

No. of quarterly investement to be made = 65 years - 20 years = 45 years

No. of quarters = 45 years * 4 = 180 quarters

Calculation of investment and interest accrued is tabulated below

Accumulated Amount at the age of 65 years will be = $ 18,36,336.35

ekkarill92 answered 1 year ago

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