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Exercise 15

Avg difficulty 2.5

Vanessa just turned 40 years old. Her plan is to save $100 per month until retirement at age 65. Suppose she deposits that $100 each month into a savings account that earns 4% APR compounded monthly.

  1. What will her balance be when she turns 65 years old?

  2. If she started saving when she turned 25 years old instead, what would her balance be?

Lee et al., Math in Society, §2.3 Savings Plans, Exercise 15

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Adapted from Math in Society © 2018–2024 Portland Community College Math Instructors. Licensed under CC BY-SA 4.0. Source: Math in Society. Imported at revision 68ee43c.