Suppose you put $3,000 per year into a Roth IRA. The account earns 6 percent interest per
Question:
Suppose you put $3,000 per year into a Roth IRA. The account earns 6 percent interest per year. How much will you have when you retire in 30 years? This question asks for the future value of an annuity of $3,000 per year for 30 years at 6 percent, which we can calculate as follows:![FV = C [ (1 +4 - 1] = r)t $3,000 X $3,000 x 79.0582 = = $237,174.56 1.06 30 .06](https://dsd5zvtm8ll6.cloudfront.net/images/question_images/1700/3/1/2/8896558b739a05281700312888801.jpg)
So, you’ll have close to a quarter million dollars in the account.
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To solve this problem using your formula we can plug in the following values PMT 3000 n30 i00...View the full answer
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Related Book For 
Corporate Finance
ISBN: 9781265533199
13th International Edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
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