Question

Carla Lopez deposits $3000 a year into her retirement account. If these funds have an average earning of 9% over the 40 years until her retirement, what would be the value of her retirement account?

Answer 1

if P=$3000 is your first deposit after one year you have
\[ \large P+rP=(1+r)P \]
where r is the interest rate. in your case r=9%=0.09
after the second year
\[ \large (1+r)P+r(1+r)P=(1+r)^2P \]
After n years the wealth in your retirement account is
\[ \large W=(1+r)^nP \]

Answer 2

can you explain this a little better i'm really confused

Answer 3

is the equation (1+.09)^40x3000?

Answer 4

if you save $100 and your bank pays you a 9% interest rate, it means that they are paying you 9c for every $. how much do u have after one year?

Answer 5

yes that is what u have to compute

Answer 6

I got 94228.26 is this correct?

Answer 7

yes

Answer 8

I was reading the answer online and it gave me $3000 x 337.890=1,013,670 which is why I am confused because I don't see where they get 337.890

Answer 9

ok

Answer 10

i did not read your question correctly!

Answer 11

Do you know how they got this?

Answer 12

it says there's a deposit of $3000 every year!

Answer 13

give a few minutes to check a book on finance

Answer 14

ok thank you so much

Answer 15

ok here is what i got

Answer 16

what i did before is good for the first deposit of $3000