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Question by Hamid K: Looking ahead to retirement, you sign up for automatic savings in a fixed-income 401K plan that pays 6%?
per year compounded annually. You plan to invest $ 3500 at the end of each year for the next 20 years. How much will your account have in it at the end of 20 years?

$ 130,520
$ 127,207
$ 128,750
$ 130,048

Best answer:

Answer by Puzzling
Take the starting amount, add 6% and an additional $ 3500. Repeat for 20 years:

Amount, Interest (6%)
$ 3,500.00, $ 210.00
$ 7,210.00, $ 432.60
$ 11,142.60, $ 668.56
$ 15,311.16, $ 918.67
$ 19,729.83, $ 1,183.79
$ 24,413.62, $ 1,464.82
$ 29,378.44, $ 1,762.71
$ 34,641.15, $ 2,078.47
$ 40,219.62, $ 2,413.18
$ 46,132.80, $ 2,767.97
$ 52,400.77, $ 3,144.05
$ 59,044.82, $ 3,542.69
$ 66,087.51, $ 3,965.25
$ 73,552.76, $ 4,413.17
$ 81,465.93, $ 4,887.96
$ 89,853.89, $ 5,391.23
$ 98,745.12, $ 5,924.71
$ 108,169.83, $ 6,490.19
$ 118,160.02, $ 7,089.60
$ 128,749.62

The closest answer is $ 128,750

What do you think? Answer below!