1. Meagan invested $1,200 each year in an IRA for 12 years in an account that earned 5% compounded annually. At the end of 12 years, she stopped making payments to the account, but continued to inves her accumulated amount at 5% compounded annually for the next 11 years. What was the value of the IRA at the end of 12 years? a. b. What was the value of the investment at the end of the next 11 years?
1. Meagan invested $1,200 each year in an IRA for 12 years in an account that earned 5% compounded annually. At the end of 12 years, she stopped making payments to the account, but continued to inves her accumulated amount at 5% compounded annually for the next 11 years. What was the value of the IRA at the end of 12 years? a. b. What was the value of the investment at the end of the next 11 years?
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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Transcribed Image Text:1. Meagan invested $1,200 each year in an IRA for 12 years in an account that earned 5% compounded
annually. At the end of 12 years, she stopped making payments to the account, but continued to inves
her accumulated amount at 5% compounded annually for the next 11 years.
What was the value of the IRA at the end of 12 years?
a.
+
b.
What was the value of the investment at the end of the next 11 years?
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