I need help figuring out the first step would it be adding up the like terms? help
1 answer:
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Answer:
The answer is : $67,266.16
Step-by-step explanation:
This question is a future value question.
As given, Trent puts away 10% of his $32,000 every year and the company will put half amount of $1,600. So, total amount becomes = each year.
Formula for future value or FV is Fv = Pmt (1 + r/n)^(nt) – 1 / (r/n)
Where, Fv = Future Value , Pmt = repeated payments , R = interest rate ,N = total number of payment periods
Putting the values in the formula,
Fv = 4800 (1 + 0.073/1)^(1x10) – 1 (0.073/1)
Fv = $67266.16
Hence, the answer is $67266.16