At age 18, someone sets up an IRA (individual retirement account) with an APR of 4%. At the end of each month he deposits $40 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.

Question

At age ​18, someone sets up an IRA​ (individual retirement​ account) with an APR of ​4%. At the end of each month he deposits ​$40 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.

oobleck · Answer

just plug your numbers into the future value formula for annuities. deposits made are (65-18)*12*40

At age ​18, someone sets up an IRA​ (individual retirement​ account) with an APR of ​4%. At the end of each month he deposits ​$40 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.

At age 18, someone sets up an IRA (individual retirement account) with an APR of 4%. At the end of each month he deposits $40 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.