You have just made your first $2,000 contribution to your retirement account. Assume you earn a return of9 percent and make no additional contributions.
 
**a.**

What will your account be worth when you retire in 35 years?
 
 

To calculate the future value of your $2,000 retirement contribution, assuming a 9% annual return over 35 years, we will use the formula for compound interest:

\[
\text{Future Value} = P \times (1 + r)^t
\]

Where:
- $ P $ is the initial principal ($2,000),
- $ r $ is the annual interest rate (9%, or 0.09),
- $ t $ is the number of years (35).

Let's calculate it. 

\[
\text{Future Value} = 2000 \times (1 + 0.09)^{35}
\]

Now, calculating the future value.The account will be worth approximately **$40,827.94** when you retire in 35 years.

Would you like more details or have any other questions?

Here are five related questions to explore:
1. How would the future value change if the return rate were 7% instead of 9%?
2. What if you made an additional $2,000 contribution every year for 35 years?
3. How much interest would you earn in total over the 35 years?
4. How would the future value be affected if the time horizon was reduced to 30 years?
5. How does the future value change if you compounded the interest monthly instead of annually?

**Tip:** Compounding frequency (monthly vs. annually) can significantly impact the growth of your investments over time.

You have just made your first $2,000 contribution to your retirement account. Assume you earn a return of 9 percent and make no additional contributions. What will your account be worth when you retire in 35 years?

Find out how to calculate the future value of a $2,000 contribution to your retirement account assuming a 9% annual return over 35 years. Learn the compound interest formula and see how your money can grow to approximately $40,827.94. Suitable for Grades 9-12.

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