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Popular Word Problems >

Feeling like an actual adult, at age 22 Ammar invests \text{2500 into an index fund at a rate of 6%. If Ammar plans to hold this account until retirement (approximately 43 years from now), how much will Ammar have if interest is compounded monthly?:}

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Solution

Solution

Amount:288.48
Solution steps
Translate the problem into an equation:A=22(1+120.06​)12⋅43
22(1+120.06​)12⋅43=288.47657…
Round to the nearest hundredth:288.48
Amount:288.48

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