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solmaris [256]
3 years ago
8

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

be in the IRA if Ed retires at the age 60.
Mathematics
1 answer:
pickupchik [31]3 years ago
3 0

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

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Two equations will be called independent if their graphs touch only on one point (they have one solution for the x-value and one solution for the y-value), and two equations will be dependent if they touch at every point (there is an infinite number of solutions).

This definition of independent and dependent equations is shown in the following diagram. Consider that there are two lines, one red line and one blue line:

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In our case, we are asked to write an equation in order to create an independent consistent linear system.

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