A new engineer is considering investing in an individual retirement account (IRA) with a mutual fund that has an average annual return of 8%. What is the future worth of her IRA at age 70 if she makes annual investments of $2000 into the fund beginning on her 22nd birthday? Assume that the fund continues to earn an annual return of 8%.

A new engineer is considering investing in an individual retirement account (IRA) with a mutual fund that has an average annual return of 8%. What is the future worth of her IRA at age 70 if she makes annual investments of $2000 into the fund beginning on her 22nd birthday? Assume that the fund continues to earn an annual return of 8%.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 19P

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