You plan to invest $2,000 every year (end-of-year payments) from now until you retire in 30 years. If you can earn 7% annually on your invested funds, how much will you have when you retire?

A=P+I. A=2000+4200. A=6200

Step-by-step explanation:Problem

You deposit $2000 into a bank account paying 7% simple interest per year. You left the money in for 30 years. Find the interest earned and the amount at the end of those 30 years?

Result

The interest is $4200 and the amount is $6200.

Explanation

STEP 1: Find an interest by using the formula I=P⋅i⋅t, where I is interest, P is total principal, i is rate of interest per year, and t is total time in years.

In this examplee P = $2000, i = 7% and t = 30 years, so

I=P⋅i⋅t I=2000⋅0.07⋅30 I=4200

STEP 2: Find an amount by using the formula A=P+I.

Since P = $2000 and I = $4200 we have

A=P+I A=2000+4200. A=6200