Personal Finance 1st Edition by Jack R. Kapoor

Exercise 31

Calculating Retirement Amount. Calculate how much you would have in 10 years if you saved $2,000 a year at an annual rate of 10 percent with the company contributing $500 a year. (Obj. 5)

Step 1 of 2

If I save $2,000 a year at an annual rate of 10 percent with the company contributing $500 a year the total investment will be $2,500. Future value of $2,500 deposited over 10 years at 10 percent can be calculated by following equation:

Where,