Raul is a saver. He sets aside $200 per month during his career of 40 years to prepare for a comfortableretirement. He does not like the idea of investing so he puts his money in a savings account which earns 2%interest per year. What is the balance of his retirement account after 40 years?​

Accepted Solution

The balance will be $441.60Step-by-step explanation:The interest in personal saving account is calculated as compound interest.The formula is: [tex]A=P(1+\frac{r}{n} )^{nt}[/tex]where A=Final amountP=Initial principal balancer=interest raten=number of times interest is applied per time periodt=number of times periods elapsedGiven that; P=$200, r=2%=0.02, n=1, t=40 then [tex]A=P(1+r/n)^{nt} \\\\A=200(1+0.02/1)^{40} \\\\A=200(1.02)^{40} \\\\A=$441.60[/tex]Learn MoreCompound Interest : : saving, interest, balance#LearnwithBrainly