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    Calculating Future Value of Annuity

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    An employee works at the local hamburger restaurant for 40 years and never earns more than minimum wage, which is $12,000 a year. However, this employee is able to save 6% per year, or $720 per year. Over the 40 year period, the employee's investments average 8% interest per year. How much will the employee have in his or her retirement account at the end of the 40 years? What are your thoughts regarding this sum?

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    https://brainmass.com/business/annuity/calculating-future-value-annuity-201709

    Solution Preview

    Please refer attached file for complete solution. Work done with the help of equation writer may not print here.

    Solution:

    Let us assume annual compounding.
    This is equivalent ...

    Solution Summary

    The solution explains the steps in calculating future value of an ordinary annuity with the help of formula.

    $2.49

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