Lisa is 21 years old and starting an IRA (individual retirement account). She is going to invest $50 at the beginning of each mo

Question

3 years ago

7

Lisa is 21 years old and starting an IRA (individual retirement account). She is going to invest $50 at the beginning of each mo

nth. The account is expected to earn 2.5% interest, compounded monthly. How much money, rounded to the nearest dollar, will Lisa have in her IRA if she wants to retire at age 52?
A. $28,052
B. $28,111
C. $40,676
D. $40,731

Mathematics

1 answer:

Allushta [10] · Answer 1 · 2022-04-20T05:21:06+03:00

Allushta [10]3 years ago

5 0

FVAD=50[((1+0.025/12)^(12*31)-1)/(0.025/12)]*(1+0.025/12)
FVAD=28110.7 round
FVAD=28111