7. Sorry, you didn’t win the lottery, but here’s a way you can still be a millionaire! Starting at age 22, every night you take $5 out of your pocket and put it

Question

Sorry, you didn’t win the lottery, but here’s a way you can still be a millionaire! Starting at age 22, every night you take $5 out of your pocket and put it in a manila envelope (title it “Lottery Winnings”). At the end of the year, you place the money from the envelope in a stock fund with an average interest rate of 10%. 
How much will you have in the account when you retire at age 65?
What would be different if you started this plan later in your life?

Answer 1

I think the formula is:

 

Balance(Y) = P(1 + r)^Y + c[ ((1 + r)^Y - 1) / r ]

 

where Y equals how much you'll have, and r = the rate (.10), and Y = how many years (43?), and c = your annual contribution of 365 x 5 = 1825

 

By the way, the final "-1" is not superscripted.

 

Plug in and solve.