At age 24, someone sets up an IRA (individual retirement account) with an APR of 5%. 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. After retirement the IRA will contain S (Do not round until the final answer, Then round to the nearest cent as needed) The total deposits made over the time period is S (Type a whole number.)
At age 24, someone sets up an IRA (individual retirement account) with an APR of 5%. 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. After retirement the IRA will contain S (Do not round until the final answer, Then round to the nearest cent as needed) The total deposits made over the time period is S (Type a whole number.)
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 age 24, someone sets up an IRA (individual retirement account) with an APR of 5%. 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.
After retirement the IRA will contain S.
(Do not round until the final answer, Then round to the nearest cent as needed)
The total deposits made over the time period is S
(Type a whole number.)
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The future value concept can be used to derive the future value of a present sum or a stream of cash flows. This helps an individual in making investment decisions.
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