Question

You have $1,900 in savings for retirement. If your investments earn 8% annually, how much will you have in your retirement account in 6 years?

Answer 1

$3,015

Explanation:

To determine the amount that you will have in 6 years, you have to use the formula to calculate the future value:

FV=PV*(1+i)^n

FV= future value

PV= present value= $1,900

i= interest rate= 8%

n= number of periods of time= 6 years

FV=1,900*(1+0.08)^6

FV=1,900*(1.08)^6

FV=3,015

According to this, the answer is that in 6 years you will have $3,015 in your retirement account.