Question

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If you start contributing to your retirement account at the age of 18 with $25 a...

If you start contributing to your retirement account at the age of 18 with $25 a month and you increase your contributions by $5 each year, how much will you be contributing a month at the age of 40?

Solutions

Expert Solution

Contribution at the age of 40 = Contribution At the age of 18 + ( Number of Periods * Increase in Contribution)

Number of periods = 40-18

= 22

Contribution at the age of 40 = 25 + (22*5)

= $135

Contribution when age will be 40 is $135.

jeff jeffy answered 2 years ago
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