Question
You are interested in saving money for your retirement. Your plan is to make regular deposits into a brokerage account that will earn 11.50 percent,
You are interested in saving money for your retirement. Your plan is to make regular deposits into a brokerage account that will earn 11.50 percent, annual compounding. You will make an initial deposit of $20,000 today. You then plan to make 40 additional deposits of $2,500 per year at the end of each of the next 40 years. At the end of the 40th year you will make an additional deposit of $6,000 (in addition to the $2,500 made at the end of the 40th year). After that you will make no additional deposits into the account, but all money in the account will continue to earn interest. How much money will be in your retirement account 50 years from today?
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