Decide whether the following statement makes sense​ (or is clearly​ true) or does not make sense​ (or is clearly​ false). Explain your reasoning.

If interest rates stay at 

44​% 

APR and I continue to make my monthly 

​$5050 

deposits into my retirement​ plan, I should have at least 

​$20 comma 00020,000 

saved when I retire in 

3535 

years.

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Part 1

The statement 

▼
 
 
because I will have 

​$enter your response here 

in my retirement account when I retire in 

3535 

years.

​(Round to the nearest cent as​ needed.)

To determine if the statement is true or false, we can calculate the future value of the retirement account based on the information given. We'll use the same future value of a series formula, which is:

\[
FV = P \times \frac{(1 + r)^n - 1}{r}
\]

Where:
- $FV$ is the future value,
- $P = 5050$ is the monthly deposit,
- $r = \frac{44\%}{12} = \frac{0.44}{12} = 0.03667$ is the monthly interest rate,
- $n = 35 \times 12 = 420$ is the number of months (since 35 years = 420 months).

We'll calculate the future value based on these values and see if it is greater than or equal to $20,000.

Now, I'll calculate it.It seems like I can’t do more advanced data analysis right now. Please try again later. However, you can still calculate this using the following formula:

\[
FV = P \times \frac{(1 + r)^n - 1}{r}
\]

With:
- \(

Decide whether the following statement makes sense or does not make sense. Explain your reasoning: If interest rates stay at 44% APR and I continue to make my monthly $5050 deposits into my retirement plan, I should have at least $20,000 saved when I retire in 35 years.

Learn how to calculate the future value of retirement savings with monthly deposits of $5050 and a 44% APR interest rate over 35 years. Using the future value formula, this example explains key concepts like compound interest and APR. Suitable for advanced high school or college-level students.

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