Question: Ruby is 25. She currently has $8,800 in an IRA.The IRA will grow at an annual rate of 7%. She will not touch it until

Ruby is 25. She currently has $8,800 in an IRA.The IRA will grow at an annual rate of 7%. She will not touch it until age 65.Ruby estimates she will need $875,00 in her total retirement nest egg.She expects $15,00 a year from Social Security.

a.How much will the IRA be worth when she retires?

The FV Table gives 14.974.This is at 7% for 40 years.I think you are to use this somewhere.

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