An individual purchased a $2000 Roth IRA when he was 25 years old. At 6 % per
Question:
An individual purchased a $2000 Roth IRA when he was 25 years old. At 6 % per annum compounded annually for 35 years when he will be 60. How much will he obtain from the investment?
Listed below are the things that will be in play for the calculation:
Initial investment (PV) $2000.00
Quoted rate 6%
Compounding frequency 4
Number of compounding (m)
Quoted rate divided by M=rate
Number of years 35
NPER (num. of years*m)
What is the Ending Amount (FV?)__________________________________
NPer - the number of payment for a loan or investment.
* For list from above starting with initial investment, quarterly, type 4, for semiannual type, 2. For annually, type 1, for monthly type 12, for daily type, 365.
Expert Answer:
To calculate the ending amount Future Value FV of the Roth IRA investment we can use t... View the full answer
