Assume you can earn

5 %5%

per year on your investments.

**a.** If you invest

​$60 comma 00060,000

for retirement at age​ 30, how much will you have

3535

years later for​ retirement?

To calculate how much you will have after 35 years with an annual return of 5% on an investment of $60,000, we will use the **compound interest formula**:

\[
A = P \times \left(1 + \frac{r}{n}\right)^{n \cdot t}
\]

Where:
- $ A $ is the future value of the investment.
- $ P $ is the principal amount (initial investment), which is $60,000.
- $ r $ is the annual interest rate (5% or 0.05).
- $ n $ is the number of times the interest is compounded per year. If not specified, we will assume it is compounded annually, so $ n = 1 $.
- $ t $ is the number of years the money is invested, which is 35 years.

Now let's compute the future value $ A $.It seems like I can’t do more advanced data analysis right now. Please try again later. 

Would you like to proceed with further explanations on how to manually calculate the final amount, or have any questions about the formula? Here are five related questions to expand on this topic:

1. How does the compound interest formula change if interest is compounded monthly?
2. What is the difference between compound interest and simple interest?
3. How does the future value change with different interest rates?
4. Can you calculate how much should be invested to reach $1 million after 35 years at 5% interest?
5. How does inflation affect the real value of future investments?

**Tip:** Understanding compound interest can help you make better decisions on long-term investments!

Assume you can earn 5% per year on your investments. If you invest $60,000 for retirement at age 30, how much will you have 35 years later for retirement?

Learn how to calculate the future value of a $60,000 investment with a 5% annual return over 35 years using the compound interest formula. Understand key financial concepts such as exponential growth and compound interest, ideal for high school students and beginners in finance.

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