Question

Your employer contributes $55 at the end of each week to your retirement account. The account will earn a weekly interest rate of .17 percent. How much will the account be worth when you retire in 25 years?

Answer 1

FV= $262,014.43

Step-by-step explanation:

Giving the following information:

Weekly deposit= $55

Interest rate= 0.0017

Number of periods= 25*52= 1,300

To calculate the future value, we need to use the following formula:

FV= {A*[(1+i)^n-1]}/i

A= weekly deposit

FV= {55*[(1.0017^1,300) - 1]} / 0.0017

FV= $262,014.43