Problem: I will discuss the retirement plan I am currently investing in. It's nothing major I am only investing $ 1200 a year with an annual interest rate of 4.5% compounded annually . Not a big amount of money will be generated by the time I retire but it should do with the social security plans that we have after we retire from work and fingers crossed things should workout well!
FV= 1200(1+0.045) ^24
FV= $3,451.22 whereby the total interest rate on yearly basis will be ($2,251.22)