Question

Lena has just become eligible to participate in her​ company's retirement plan. Her company does not match​ contributions, but the plan does average an annual return of ​%. Lena is 40 and plans to work to age 65. If she contributes ​$ per​ month, how much will she have in her plan at​ retirement?

Answer 1

Answer:

Throughout her retirement plan, Lena will still have $206,673.13.

Explanation:

The given values are:

Annual Interest Rate

= 12.00%

Monthly Deposit

= $110

Period

= 25 years i.e., 300 months

Monthly Interest Rate

= 1.00%

Now,

The Accumulated Deposits will be:

⇒  $110\times 1.01^{299} + 110\times 1.01^{298}+....+ 110\times 1.01 + 110$

⇒  $\frac{110\times (1.01^{300} - 1)}{0.01}$

⇒  $110\times 1,878.846626$

⇒  $206,673.13$  ($)