a) amount = 1(1.10^30 - 1)/.10
I just used the basic annuity formula
b) amount = 4000(1.10^30 - 1)/.10
So once you have a), the amount that $1 produces, you simply have to multiply that
by the different investment values.
let me know what you get for c).
How much will you have accumulated over a period of 30 years if, in an IRA which has a 10% interest rate compounded quarterly, you annually invest:
a. $1
b. $4000
c. $10,000
d. Part (a) is called the effective yield of an account. How could Part (a) be used to determine
Parts (b) and (c)? (Your answer should be in complete sentences free of grammar, spelling,
and punctuation mistakes.)
Thank you for the help!!
1 answer