Bob makes his first $950 deposit into an IRA earning 8% compounded annually on the day...
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Bob makes his first $950 deposit into an IRA earning 8% compounded annually on the day he turns 22 and his last $950 deposit on the day he turns 55 (34 equal deposits in all). With no additional deposits, the money in the IRA continues to earn 8% interest compounded annually until Bob retires on his 65th birthday. How much is the IRA worth when Bob retires? Value of the IRA on Bob's 65th birthday: $ | Bob makes his first $950 deposit into an IRA earning 8% compounded annually on the day he turns 22 and his last $950 deposit on the day he turns 55 (34 equal deposits in all). With no additional deposits, the money in the IRA continues to earn 8% interest compounded annually until Bob retires on his 65th birthday. How much is the IRA worth when Bob retires? Value of the IRA on Bob's 65th birthday: $ |
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