Question

Lena has just become eligible to participate in her​ company's retirement plan. Her company does not match​ contributions, but the plan does average an annual return of ​%. Lena is 40 and plans to work to age 65. If she contributes ​$ per​ month, how much will she have in her plan at​ retirement?

Answer 1

Throughout her retirement plan, Lena will still have $206,673.13.

Step-by-step explanation:

The given values are:

Annual Interest Rate

= 12.00%

Monthly Deposit

= $110

Period

= 25 years i.e., 300 months

Monthly Interest Rate

= 1.00%

Now,

The Accumulated Deposits will be:

⇒
`110* 1.01^(299) + 110* 1.01^(298)+....+ $110* 1.01 + $110`

⇒
`(110* (1.01^(300) - 1))/(0.01)`

⇒
`110* 1,878.846626`

⇒
`206,673.13` ($)