Question

Francine currently has $45,000 in her 401k account at work, and plans to contribute $8,000 each year for the next 15 years. How much will she have in the account in 15 years, if the account averages a 4% annual return?

I'm suppose to use a savings annuity formula. Any help would be appreciated!

Answer 1

Here is the formula:

Explanation:

FV= future value of the annuity · PMT= amount of the periodic payment · r= annual interest rate written in decimal form · m=number of compounding