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hello and welcome in this video well take a look at how you can compute how much your savings will be worth when you retire so just to come up with a simple example lets say lets take a five-year time horizon so you say you have your and you have ceilings and lets say you have your one two three four and five and youre saving $2,000 every year so Im just going to copy this now our goal is to find out if youre going to save this at an interest rate of lets say five percent you put it in the bank and they give you five percent if you save it at that at that rate how much will you have at the end of the five year period so lets take a small detour and try to understand how this interest works $2,000 and lets say youre earning interest at the rate of five percent for one year so then what happens is you get paid youre at the end of the one year you have your two thousand and you have your interest on the two thousand which is two thousand times five percent so that can be writ
