At the age of 30, to save for retirement, you decide to deposit $70 at the end of each month in an IRA that pays 4% compounded monthly. a. Use the following formula to determine how much you will have in the IRA when you retire at age 65. b. A= P[(1+r)²-1] r 9 Find the interest. or a. You will have approximately $ in the IRA when you retire. (Do not round until the final answer. Then round to the nearest dollar as needed.) b. The interest is approximately $ (Use the answer from part a to find this answer. Round to the nearest dollar as needed.)
At the age of 30, to save for retirement, you decide to deposit $70 at the end of each month in an IRA that pays 4% compounded monthly. a. Use the following formula to determine how much you will have in the IRA when you retire at age 65. b. A= P[(1+r)²-1] r 9 Find the interest. or a. You will have approximately $ in the IRA when you retire. (Do not round until the final answer. Then round to the nearest dollar as needed.) b. The interest is approximately $ (Use the answer from part a to find this answer. Round to the nearest dollar as needed.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![At the age of 30, to save for retirement, you decide to
deposit $70 at the end of each month in an IRA that pays
4% compounded monthly.
a. Use the following formula to determine how much
you will have in the IRA when you retire at age 65.
P[(1+r)²-1]
A =
A:
or
(7)
b. Find the interest.
ID
a. You will have approximately $ in the IRA
when you retire.
(Do not round until the final answer. Then round
to the nearest dollar as needed.)
b. The interest is approximately $
(Use the answer from part a to find this answer.
Round to the nearest dollar as needed.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F976c6a94-9bfd-4039-ae71-669351f7d795%2Fd2b69ff6-c695-4369-844e-699f1682af18%2Ff8xu6t.jpeg&w=3840&q=75)
Transcribed Image Text:At the age of 30, to save for retirement, you decide to
deposit $70 at the end of each month in an IRA that pays
4% compounded monthly.
a. Use the following formula to determine how much
you will have in the IRA when you retire at age 65.
P[(1+r)²-1]
A =
A:
or
(7)
b. Find the interest.
ID
a. You will have approximately $ in the IRA
when you retire.
(Do not round until the final answer. Then round
to the nearest dollar as needed.)
b. The interest is approximately $
(Use the answer from part a to find this answer.
Round to the nearest dollar as needed.)
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