You have just made your first $5,000 contribution to your individual retirement account. Assume you earn an annual return of 10.95 percent and make no additional contributions.What will your account be worth when you retire in 41 years?

To find out how much your retirement account will be worth in 41 years, we can use the **future value** formula for compound interest:

\[
FV = PV \times (1 + r)^t
\]

Where:
- $FV$ is the future value of the investment (what you want to calculate),
- $PV$ is the present value or the initial amount (which is $5,000),
- $r$ is the annual return rate (10.95% or 0.1095),
- $t$ is the time in years (41 years).

Let's calculate it:

\[
FV = 5000 \times (1 + 0.1095)^{41}
\] 

I will compute this now.The future value of your retirement account after 41 years, with no additional contributions and an annual return of 10.95%, will be approximately **$354,151.90**.

Do you want more details on how this was calculated or have any questions?

Here are 5 related questions to explore further:
1. How would your retirement account value change if the interest rate was lower, say 8%?
2. What would happen if you made additional yearly contributions to the account?
3. How does the compounding frequency (e.g., monthly vs. yearly) affect the future value?
4. What is the effect of inflation on the future value of your retirement account?
5. How does delaying your retirement by a few years affect your savings?

**Tip:** The earlier you start investing, the more you benefit from compounding interest over time.

You have just made your first $5,000 contribution to your individual retirement account. Assume you earn an annual return of 10.95 percent and make no additional contributions. What will your account be worth when you retire in 41 years?

Find out how much your retirement account will grow with a $5,000 initial contribution, 10.95% annual return, and no additional contributions over 41 years. Learn how to apply the compound interest formula to calculate future value and understand exponential growth. Suitable for Grades 9-12.

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