Question

You have decided to stop drinking Starbucks coffee and invest that money in an IRA. If you

Answer 1

Complete question :

You have decided to stop drinking Starbucks coffee and invest that money in an IRA. If you deposit $492 each month earning 6% interest, how much will you have in the account after 40 years?

Answer:

$250,329.60

Step-by-step explanation:

Given:

Principal, P= $492 per month

= $492 * 12 = $5,904 per year

Rate, R= 6%

Time, T=  40 years

Let's first find the amount after 40 years.

Amount = 5940 * 40 = $236,160

The interest after 40 years =

$Interest = \frac{PRT}{100} = \frac{5904 * 6 * 40}{100}$

Interest = $14,169.60

The total amount I will have in my account after 40 years:

Amount + interest

= $236,160 + $14,169.60

= $250,329.60