MATH SOLVE

4 months ago

Q:
# Stephanie is going to contribute $250 on the first of each month, starting today, to her retirement account. Her employer will provide a 50 percent match. In other words, her employer will add $125 to the amount Stephanie saves. If both Stephanie and her employer continue to do this and she can earn a monthly interest rate of .5 percent, how much will she have in her retirement account 25 years from now?

Accepted Solution

A:

Answer:she have in her retirement account 25 years from now is $261172.09Step-by-step explanation:given data contribute principal P = $250employer = 50 % employer add = $125interest rate = 0.5 % = 0.005 time = 25 year = 300 monthsto find outhow much will she have in her retirement account 25 years from nowsolutionhere monthly payment = 250 + 125 = $375we will apply here amount formula that is amount = P × [tex]\frac{(1+rate)^{time} - 1 }{rate}[/tex] × ( 1 + rate ) put here valueamount = 375 × [tex]\frac{(1+0.005)^{300} - 1 }{0.005}[/tex] × ( 1 + 0.005 ) amount = 261172.09so she have in her retirement account 25 years from now is $261172.09