Dominique has just turned 58 and she has deposited her annual payment of $15,000 into her retirement account. She made her first such saving deposit into this fund on her 31st birthday. Dominique has also retired and wants to figure out how much money she has in her retirement account for her retired life. You are Dominique's friend who knows finance. How much is Dominique's savings worth today given that the fund has earned an annual return of 3.0%? (Enter just the number in dollars without the $ sign or a comma and round off decimals to the closest integer, i.e., rounding $30.49 down to $30 and rounding $30.50 up to $31.)

To calculate how much Dominique's savings are worth today, we can use the future value of an annuity formula, given that she has made consistent annual payments and the fund has earned a constant annual return.

The formula for the future value of an annuity is:

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

Where:
- $ P $ is the annual payment ($15,000),
- $ r $ is the annual interest rate (3.0% or 0.03),
- $ n $ is the number of years the payments were made.

Dominique started saving at age 31 and just turned 58, so she has been saving for $ n = 58 - 31 + 1 = 28 $ years (the "+1" accounts for the initial payment).

Let's plug in the values:

\[
FV = 15,000 \times \frac{(1 + 0.03)^{28} - 1}{0.03}
\]

I'll calculate the future value now.Dominique's savings are worth approximately **$643,964** today.

Do you want more details on the calculation, or do you have any questions?

Here are five related questions to consider:
1. What would Dominique's savings be worth with a different interest rate, say 5%?
2. How would the final amount change if Dominique saved for only 25 years instead of 28 years?
3. What is the effect of making larger or smaller annual payments on the final savings?
4. How would the savings amount change if the interest rate varied each year?
5. What if Dominique made semi-annual or monthly payments instead of annual ones?

**Tip:** Consistent savings with compound interest can significantly boost your retirement fund over time.

Discover how to calculate the future value of retirement savings for Dominique, who made annual $15,000 payments for 28 years with a 3.0% annual return. Learn the formula for future value of annuities and understand the impact of consistent savings and compound interest on retirement funds.

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