Answer:
A) Total amount deposited over the length of investment = $177600
B) Interest accrued upon retirement = $1,043,678.01
Step-by-step explanation:
From the question, we can see that he started the savings at the age of 28 and ended when he retired at the age of 65. Thus, number of years = 65 - 28 = 37 years
We are told he deposited $400 each month and that upon retirement it had grown to $1,161,278.01.
Since he deposited $400 each month, in a year which has 12 months, he deposited;
Amount deposited each year = 12 × 400 = $4800
Now, it took 37 years before he retired which was the point at which he stopped the deposit.
Thus;
Total Amount deposited upon retirement = Amount deposited each year × number of years he deposited.
Thus;
Total amount deposited over the length of investment upon retirement = 4800 × 37 = $177600
Now,we have seen that his retirement savings reads $1,161,278.01.
Thus is way more than the deposits he made throughout his work years.
This means there was interest on the money.
Interest = $1,161,278.01 - $177600
Interest = $1,043,678.01
