A bank (through its TV ads) is trying to interest you in an IRA (individual retirement...
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A bank (through its TV ads) is trying to interest you in an IRA (individual retirement account). They say that if you invest $2,000 per year for the next 40 years in their IRA, you will have a nest egg of $600,000 to retire on. a) What interest rate are they using assuming the money is deposited at the end of the year and that the compounding period is yearly? A bank (through its TV ads) is trying to interest you in an IRA (individual retirement account). They say that if you invest $2,000 per year for the next 40 years in their IRA, you will have a nest egg of $600,000 to retire on. a) What interest rate are they using assuming the money is deposited at the end of the year and that the compounding period is yearly?
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We can use the future value formula for an annuity to solve for th... View the full answer
Related Book For
Horngrens Accounting
ISBN: 978-0134674681
12th edition
Authors: Tracie L. Miller nobles, Brenda L. Mattison, Ella Mae Matsumura
Posted Date:
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