Bob makes his first $1,400 deposit into an IRA earning 6.7% compounded annually on his 24th birthday and his last $1,400 deposit on his 44th birthday (21 equal deposits in all). With no additional deposits, the money in the IRA continues to earn 6.7% interest compounded annually until Bob retires on his 65th birthday. How much is in the IRA when Bob retires?
Bob makes his first $1,400 deposit into an IRA earning 6.7% compounded annually on his 24th birthday and his last $1,400 deposit on his 44th birthday (21 equal deposits in all). With no additional deposits, the money in the IRA continues to earn 6.7% interest compounded annually until Bob retires on his 65th birthday. How much is in the IRA when Bob retires?
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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Transcribed Image Text:Bob makes his first $1,400 deposit into an IRA earning 6.7% compounded annually on his 24th birthday and his last $1,400 deposit on his 44th birthday (21 equal
deposits in all). With no additional deposits, the money in the IRA continues to earn 6.7% interest compounded annually until Bob retires on his 65th birthday. How
much is in the IRA when Bob retires?
The amount in the IRA when Bob retires is $
(Round to the nearest cent as needed.)
...
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