Question

Brad will graduate next year. When he begins working, he plans to deposit $6000 at the end of each year into a retirement account that pays 6% interest. How much will be in his account after 40 deposits

Answer 1

Answer:

$92,8571.7937

Explanation:

The computation of the amount after 40 deposits is shown below:

= (((1 + interest rate)^number of years - 1) ÷ interest rate)× principal

= (((1 + 0.06)^40-1) ÷ 0.06) × $6,000

= $92,8571.7937

We simply applied the above formula and the same is to be considered

We considered all the things given in the question