Ed turns 34 and deposits $100 at the end of each month in IRA that earns 9% interest p.A compounded monthly. Find how much will

Question

2 years ago

8

be in the IRA if Ed retires at the age 60.

1 answer:

pickupchik [31] · Answer 1 · 2022-10-26T16:49:21+03:00

Answer:

FV= $123,879.85

Step-by-step explanation:

Giving the following information:

Montlhy deposit (A)= $100

Monthly interest rate (i)= 0.09/12= 0.0075

Number of periods (n)= 12*26= 312 months

<u>To calculate the future value, we need to use the following formula:</u>

FV= {A*[(1+i)^n-1]}/i

A= monthly deposit

FV= {100*[(1.0075^312) - 1]} / 0.0075

FV= $123,879.85