Answer:he will have $244665 in his account when he retires.
Step-by-step explanation:
He invests $15,000 in the account when he is 25 years old. This means that the principal
P = 15000
It was compounded monthly. This means that it was compounded 12 times in a year. So
n = 12
The rate at which the principal was compounded is 7%. So
r = 7/100 = 0.07
He left the money till he retired at the age of 65. So
t = 65 - 25 = 40 years
The formula for compound interest is
A = P(1+r/n)^nt
A = total amount in the account at the end of t years. Therefore
A = 15000 (1+0.07/12)^12×40
A = 15000 × 16.311
A = $244665
