Josh graduated from Texas University IE department in August 2020 and he was able to secure a Business Analyst position recently

Economics Dec 03, 2020

Josh graduated from Texas University IE department in August 2020 and he was able to secure a Business Analyst position recently. He is making good money and he plans to enroll in a Personel Retirement Plan. He plans to invest $ 17 comma 921 each year beginning 1 year from now and hopes to retire in 35 years.

Which one of the following is closest to the equivalent future worth of josh's investment in year 35 if the retirement plan earns an interest of 5% per year?

Expert Solution

Equivalent future worth ($) = 17,921 x F/A(5%, 35)

= 17,921 x 90.3203

= 1,618,630

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