At the age of 32, to save for retirement, you decide to deposit $70 at the end of each month in an IRA that pays 4.5% compounded monthly. a. Use the following formula to determine how much you will have in the IRA when you retire at age 65. A= A= P[(1+r)-1] r -|C b. Find the interest. nt or D 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 32, to save for retirement, you decide to deposit $70 at the end of each month in an IRA that pays 4.5% compounded monthly. a. Use the following formula to determine how much you will have in the IRA when you retire at age 65. A= A= P[(1+r)-1] r -|C b. Find the interest. nt or D 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.)
Chapter9: Sequences, Probability And Counting Theory
Section9.4: Series And Their Notations
Problem 56SE: To get the best loan rates available, the Riches want to save enough money to place 20% down on a...
Related questions
Question
![At the age of 32, to save for retirement, you decide to
deposit $70 at the end of each month in an IRA that pays
4.5% compounded monthly.
a. Use the following formula to determine how much you
will have in the IRA when you retire at age 65.
A=
A=
P[(1+r)-1]
r
L|C
b. Find the interest.
nt
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.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd8776e5e-a1de-48d6-ac3e-f9f0f44d4219%2F7f6f9795-5916-407c-9cd6-3dd59f258a01%2Fzikoih_processed.jpeg&w=3840&q=75)
Transcribed Image Text:At the age of 32, to save for retirement, you decide to
deposit $70 at the end of each month in an IRA that pays
4.5% compounded monthly.
a. Use the following formula to determine how much you
will have in the IRA when you retire at age 65.
A=
A=
P[(1+r)-1]
r
L|C
b. Find the interest.
nt
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.)
Expert Solution
Step 1
Formula Used-
where
is the Future value
is the Deposit value at the end of the compounded period
is Annual rate of interest
is the number of times the value is compounded per year
is number of years
Given-
Step by step
Solved in 3 steps
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