Robin, who is self-employed, contributes $4500/year into a Keogh account. How much will he have in the account after 25 years if the account earns interest at the rate of 2.5%/year compounded yearly?

Question

Robin, who is self-employed, contributes $4500/year into a Keogh account. How much will he have in the account after 25 years if the account earns interest at the rate of 2.5%/year compounded yearly? (Round your answer to the nearest cent.)

Answer 1

The formula I use is: fv=p*(1+int/c)^(n*t)

fv-final value

c-compound

p-principal

interest

n-years

t-times/yr

=$8347.75