An Individual Retirement Account (IRA) has $17 comma 000in it, and the owner decides not to add any more money to the account

Question

3 years ago

15

other than interest earned at 4%compounded daily. How much will be in the account 30years from now when the owner reaches retirement age?

1 answer:

Umnica [9.8K] · Answer 1 · 2022-02-16T03:47:19+03:00

Answer: The owner reaches at Rs. 56438.28 after 30 years.

Step-by-step explanation:

Since we have given that

Sum = Rs. 17000

Rate of compounded daily = 4%

Number of years = 30 years

So, Using "compound interest formula" we get that :

$A=P(1+\dfrac{r}{n})^{nt}\\\\A=17000(1+\dfrac{0.04}{365})^{365\times 30}\\\\A=17000(1.000109589)^{10950}\\\\A=56438.28$

Hence, The owner reaches at Rs. 56438.28 after 30 years.

An Individual Retirement Account​ (IRA) has ​$17 comma 000in​ it, and the owner decides not to add any more money to the account