Answer:
Total= $713,575.14
Explanation:
Giving the following information:
Greg just celebrated his 40th birthday. He has accumulated $76,000.00 in his 401(k) and his wife has accumulated $95,000.00 in her business.
The normal return to investors is 7.25%
We will calculate the final value of George and his wife. We need to use the following formula on each capital.
FV= PV*(1+i)^n
Georger FV= 76,000*(1.0725^20)= $308,148.18
His wife FV= 95,000*(1.0725^20)= $405,426.96
Total= $713,575.14
