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Raul is a saver. He sets aside $200 per month during his career of 40 years to prepare for a comfortable
retirement. He does not like the idea of investing so he puts his money in a savings account which earns 2%
interest per year. What is the balance of his retirement account after 40 years?​

Respuesta :

lucic

The balance will be $441.60

Step-by-step explanation:

The interest in personal saving account is calculated as compound interest.

The formula is: [tex]A=P(1+\frac{r}{n} )^{nt}[/tex]

where A=Final amount

P=Initial principal balance

r=interest rate

n=number of times interest is applied per time period

t=number of times periods elapsed

Given that; P=$200, r=2%=0.02, n=1, t=40 then

[tex]A=P(1+r/n)^{nt} \\\\A=200(1+0.02/1)^{40} \\\\A=200(1.02)^{40} \\\\A=$441.60[/tex]

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Compound Interest : https://brainly.com/question/12663121

Keyword : saving, interest, balance

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