At age 18, someone sets up an IRA (individual retirement account) with an APR of 4%. At the end of each month he deposits $100 in the account. How much will the IRA contain when he retires at age 65? Compare that amount to the total deposits made over the time period. Question content area bottom Part 1 After retirement the IRA will contain $enter your response here. (Do not round until the final answer. Then round to the nearest cent as needed.) Part 2 The total deposits made over the time period is $enter your response here. (Type a whole number.)

At age 18, someone sets up an IRA (individual retirement account) with an APR of 4%. At the end of each month he deposits $100 in the account. How much will the IRA contain when he retires at age 65? Compare that amount to the total deposits made over the time period. Question content area bottom Part 1 After retirement the IRA will contain $enter your response here. (Do not round until the final answer. Then round to the nearest cent as needed.) Part 2 The total deposits made over the time period is $enter your response here. (Type a whole number.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 44P

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Question content area bottom

Part 1

After retirement the IRA will contain

$enter your response here.

(Do not round until the final answer. Then round to the nearest cent as needed.)

Part 2

The total deposits made over the time period is

$enter your response here.

(Type a whole number.)

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