To find the total in the retirement account after 38 years of investing with monthly contributions and an interest rate of 4.99%, we can use the compound interest formula.
The formula for the future value of an investment with regular monthly contributions is given by:
FV = P * [(1 + r)^n - 1] / r
Where:
FV is the future value or the total in the retirement account.
P is the monthly contribution amount.
r is the monthly interest rate (annual interest rate divided by 12).
n is the number of monthly contributions (years invested multiplied by 12).
Let's calculate the total:
P = $225
r = 4.99% / 100 / 12 = 0.0041583 (monthly interest rate)
n = 38 * 12 = 456 (number of monthly contributions)
FV = $225 * [(1 + 0.0041583)^456 - 1] / 0.0041583
Using a financial calculator or spreadsheet, we can evaluate this expression to find the future value or total in the retirement account.
The calculated total may vary depending on the compounding frequency and rounding used.