# You will make $200 deposits every week into a retirement account for the next 20 years until you...

## Question:

You will make $200 deposits every week into a retirement account for the next 20 years until you retire. If the account offers 0.15% per week, how much will you have in 20 years?

## Annuity:

An annuity is recognized by its stream of cash inflows during a specific period. Its concept can help people to determine the fixed amount of deposit in a savings plan. In addition, an annuity can be a recommended investment for the retirement.

## Answer and Explanation: 1

**Given information: **

- Deposit = $200
- N = 20 x 52 = 1040
- I = 0.15% per week

**Determine the account balance after 20 years: **

{eq}Balance = \displaystyle Deposit\times\frac{(1 + I)^N - 1}{I} {/eq}

{eq}Balance = \displaystyle $200\times\frac{(1 + 0.15\%)^{1040} - 1}{0.15\%} {/eq}

{eq}Balance = $500,434.96 {/eq}

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Chapter 2 / Lesson 7Learn about annuities. Understand what an annuity is, examine the annuity formula and learn how to calculate its future value, and see examples of annuities.

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