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It is January 1, 2020 and Ray has just established a pension fund. Ray will put $1,000 into the account on December 31, 2020 and
It is January 1, 2020 and Ray has just established a pension fund. Ray will put $1,000 into the account on December 31, 2020 and at the end of each year for the following 39 years. Ray will, therefore, be making 40 such payments in total. How much money will Ray have in his account at the end of the 40th year? Assume that the account pays 12% interest compounded annually. Round your answer to the nearest $1,000.
Select one:
a. $93,000
b. $766,000
c. $850,000
d. $767,000
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