you want to retire in 35 years * Deposit (invest) P2,500 year into a fund (which returns 12.1% annually) * How much will you have to retire on in 35 years?

To determine how much you'll have to retire on after 35 years with an annual deposit of P2,500 and a 12.1% return rate, we can use the **future value of an annuity formula**:

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

Where:
- \( FV \) = Future Value (the amount you will have at retirement)
- \( P \) = Annual deposit (P2,500)
- \( r \) = Annual interest rate (12.1% = 0.121)
- \( n \) = Number of years (35 years)

Let's calculate it.After 35 years, with an annual deposit of P2,500 and a 12.1% annual return, you will have approximately **P1,104,853.30** saved up for retirement.

Would you like a more detailed explanation or have any questions?

Here are some related questions:
1. How does compound interest affect long-term investments?
2. What would happen if the annual interest rate changes to 10%?
3. How would increasing the deposit to P3,500 affect the final amount?
4. How is the future value formula different for monthly contributions?
5. How does inflation impact the real value of the retirement fund?

**Tip:** Start saving early to maximize the power of compound interest!

Learn how to calculate the future value of retirement savings with an annual investment of P2,500 at a 12.1% return rate over 35 years. This problem demonstrates the power of compound interest using the Future Value of Annuity formula. Perfect for students and investors looking to plan long-term savings.

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