Question

How much can be accumulated for retirement if $2000 is deposited annually beginning 1 year from today and the account earns 9% interest compounded annually for 40 years?

Answer 1

Answer:

Therefore,   can be accumulated  675764.8 $

Step-by-step explanation:

From Exercise, we know that is:

$2000 is deposited  

9% interest

for 40 years

We have the formula, we use this formula to calculate accumulation:

ACC= [\frac{(1.09)^{40}-1){0.09}]  ·2000

ACC=[\frac{30.40942}{0.09} · 2000

ACC=337.8824·2000

ACC= 675764.8 $

Therefore,   can be accumulated  675764.8 $

Answer 2

$62818.8 can be accumulated if $2000 is deposited for 40 years with a rate of interest of 9%.

What is the compound interest formula?

The compound interest formula is :

$A = P(1+\frac{r}{100} )^n$

Where A is the final amount

P is the principal amount

r is the rate of interest

n is the tenure

It is given that

Principal  = $2000

Rate of interest = 9%

Tenure = 40 years

So final amount, $A= 2000(1+\frac{9}{100} )^40$

Amount A = $62818.8

Therefore, $62818.8 can be accumulated if $2000 is deposited for 40 years with a rate of interest of 9%.

To get more about compound interest visit:

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