After completing her residency, an obstetrician plans to invest $9,000 per year at the end of...
After completing her residency, an obstetrician plans to invest $9,000 per year at the end of each year into a low-risk retirement account. She expects to earn 6 percent for thirty-five years. What will her retirement account be worth at the end of those thirty-five years?
Homework Answers
Amount invested each year = P = $9000
Number of years = n = 35
Interest Rate = r = 6%
Hence, Future Value in account after 35 years = FV = P(1+r)n-1 +....+ P(1+r)2 + P(1+r) + P
= P[(1+r)n -1]/r
= 9000[(1+0.06)35 -1]/0.06
= $1,002,913.02
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