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You are planning for your retirement and have decided the following: you will retire in 40...

You are planning for your retirement and have decided the following: you will retire in 40 years and will make monthly deposits into your retirement account of $300 for the next 15 years and then monthly deposits of $750 for the remaining 25 years until retirement. This account earns a 7% rate of return, compounded monthly. In addition, you will inherit $50,000 7 years from today. The inheritance will be deposited into an account that will earn 10% per year until year 20 and then 15% per year after that (compounded annually). How much will you have when you retire?

$2,122,992.89

$3,977,062.58

$3,527,728.75

$702,642.46

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jeff jeffy answered 1 year ago
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