determine the future value of your retirement account 20 years from now 627677

To be conservative, assume that your retirement account will earn 4.8 percent income per year, compounded monthly (because you make monthly contributions). Although you may increase your monthly contributions in the future if your salary increases, at the present time, you can”t forecast an increase. So you assume that $400 will be contributed into your retirement account at the end of each month. Determine the balance in your retirement account at the end of 20 years. Each month, you put $250 into your retirement account, and your employer matches $150, so $400 is invested each month. Looking ahead, you wonder how much your retirement account will be worth when you retire in 20 years. You assume that your annual rate of income will be 5.4 percent over the next 20 years. Determine the future value of your retirement account 20 years from now.