Employee having retirement account


Calculate the following:

An employee works at the local hamburger restaurant for 40 years and never earns more than minimum wage, which is $12,000 a year. However, this employee is able to save 6%, or $720, per year. Over the 40-year period, the employee's investments average 8% interest per year.

Problem 1. How much will the employee have in his or her retirement account at the end of the 40 years?

Problem 2. What are your thoughts regarding this sum?

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Finance Basics: Employee having retirement account
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