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artcher [175]
3 years ago
14

Joe plans to fund his individual retirement account (IRA) with the maximum contribution of $2,500 at the end of each year for th

e next 30 years. If Joe can earn 10 percent on his contributions, how much will he have at the end of the thirtieth year?
Business
1 answer:
gayaneshka [121]3 years ago
8 0

Answer:

$411235

Explanation:

the amount he will have at the end of the thirtieth year F = P × ( (1+r)^n -1) / r

where P = $ 2500

r = 10% = 0.1

n = 30 years

F = $ 2500 ( ( 1 + 0.1) ³⁰ - 1 ) / 0.1 = $41135

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