Question

To save for retirement, you invest $8,300 at the end of each year for 29 years. If your investment earns interest at an annual rate of 8%, how much will you have when you retire? Future value $ ____

Answer 1

To calculate the future value of the investment, use the formula: Future Value = Present Value * (1 + Interest Rate)^Number of Years. After calculations, the future value of the investment when you retire will be approximately $80,402.45.

Step-by-step explanation:

To calculate the future value of an investment, we can use the formula:

Future Value = Present Value * (1 + Interest Rate)^Number of Years

In this case, the present value is $8,300, the interest rate is 8%, and the number of years is 29.

Future Value = $8,300 * (1 + 0.08)^29

Calculating this, the future value of the investment when you retire will be approximately $80,402.45.