Blushing Rose invests $1,000 into her Roth IRA. She can increase thisinvestment annually by $1,000 until she reaches the $5,000 annual contributionlimit. She will then invest $5,000 per year at the beginning of eachyear for 30 years. How much will Blushing have in her IRA at the end of34 years if her IRA earns 8 percent?

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
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Blushing Rose invests $1,000 into her Roth IRA. She can increase this
investment annually by $1,000 until she reaches the $5,000 annual contribution
limit. She will then invest $5,000 per year at the beginning of each
year for 30 years. How much will Blushing have in her IRA at the end of
34 years if her IRA earns 8 percent?

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