Question

Looking aheadto retirement you sign up for automatic savings in a fixed income 401 k plan that pays 6.5% per year compounded annually. You plan to invest $3000 at the end of each year for the next ten years. How much will you ac fount have at the end of 10 years

Answer 1

times 3000 by 1.065 to work out how much money the account has after 1 year.

add 3000 and times again.

there is a formula to get rid of the brute force method but this is easiest to understand.