Question

Mr.Jackson made a one time deposit of $57,000 into his retirement account when he was 25 years old. The account has an annual interest rate of 3.35%. If Mr.Jackson checks this retirement account when he is 72 years old. A. How much will he have earned in interest?B. What will be the total amount in his retirement account.

Answer 1

First we have to calculate how many yeas has pass from the date of the deposit and when he is 72 years old so:

`72-25=47`

So has pass 47 yeas, now we can calculate how much will he have earned in interest like this:

`57000(1+0.035)^(47)=287125.19`

so in interes will be the resto of this value minus the initial amound:

`287125.19-57000=230125.19`

In interest he earned 203,125.19 and the total amount is: 287,125.19