If I invest $75,000 at 5.2% interest for 11 years, how much will I have at retirement?

If I invest $75,000 at 5.2% interest for 11 years, how much will I have at retirement?

• A. $124,103.56
• B. $127,445.99
• C. $130,988.87
• D. $135,781.33

Answer: (C)

To determine how much you will have at retirement after investing $75,000 at an interest rate of 5.2% for 11 years, we need to use the formula for compound interest, which is given by: \[ A = P(1 + r)^n \] where: - \( A \) is the amount of money accumulated after n years, including interest. - \( P \) is the principal amount (the initial investment). - \( r \) is the annual interest rate (decimal). - \( n \) is the number of years the money is invested or borrowed. In this case: - The principal \( P \) is $75,000. - The annual interest rate \( r \) is 5.2%, which we convert to decimal form as 0.052. - The number of years \( n \) is 11. Now, substituting these values into the compound interest formula: \[ A = 75000(1 + 0.052)^{11} \] Calculating the term inside the parentheses: \[ 1 + 0.052 = 1.052 \] Next, we raise this to the power of 11: \[ 1.052^{

To determine how much you will have at retirement after investing $75,000 at an interest rate of 5.2% for 11 years, we need to use the formula for compound interest, which is given by:

[ A = P(1 + r)^n ]

where:

• ( A ) is the amount of money accumulated after n years, including interest.

• ( P ) is the principal amount (the initial investment).

• ( r ) is the annual interest rate (decimal).

• ( n ) is the number of years the money is invested or borrowed.

In this case:

• The principal ( P ) is $75,000.

• The annual interest rate ( r ) is 5.2%, which we convert to decimal form as 0.052.

• The number of years ( n ) is 11.

Now, substituting these values into the compound interest formula:

[ A = 75000(1 + 0.052)^{11} ]

Calculating the term inside the parentheses:

[ 1 + 0.052 = 1.052 ]

Next, we raise this to the power of 11:

[ 1.052^{