Question

Susan wants to retire at 65. At 21, she begins to deposit $35 a month into an account earning 8.5% APR. How much will she have when she turns 65?

Answer 1

$201,767.18

Explanation:

Age at which Susan will retire= 65 years

Age ate which she began investing = 21 years

time for she invested = 44 years = 528 months

APR= 8.5 %

Effective annual rate = 8.84% (compounded monthly)

monthly investment= $35

Annual investment of Susan= 35*12= $420

Applying formula and calculating we get

When she retires she will receive = $201,767.18