Question

If I deposit $100,000 in a retirement account that gives 8 % paid annually, what will be balance after 25 years?

Answer 1

$300,000

Explanation:

To find 8% of 100,000 all you need to do is multiply 100,000 by .08.

100,000 (.08) = 8,000

The 8,000 accounts for one year, so now you have to multiply 8,000 by 25.

8,000 (25) = 200,000

Now add the initial amount to the additional 200,00 that will be paid to the retirement account.

100,000 + 200,000 = 300,000

The answer is $300,000.