Ask Question
15 December, 20:27

g Bob makes his first $ 800 deposit into an IRA earning 7.4 % compounded annually on his 24th birthday and his last $ 800 deposit on his 39th birthday (16 equal deposits in all). With no additional deposits, the money in the IRA continues to earn 7.4 % interest compounded annually until Iob retirees on his 65th birthday. How much is in the IRA when Bob retires

+1
Answers (1)
  1. 16 December, 00:03
    0
    FV = $137,440.62

    Explanation:

    Giving the following information:

    Bob makes his first $ 800 deposit into an IRA earning 7.4 % compounded annually on his 24th birthday and his last $ 800 deposit on his 39th birthday (16 equal deposits in all). With no additional deposits, the money in the IRA continues to earn 7.4 % interest compounded annually until Iob retirees on his 65th birthday.

    First, 16 years:

    FV = {A*[ (1+i) ^n-1]}/i

    A = annual deposit

    FV = {800*[ (1.074^16) - 1]}/0,074 = $23,067.90

    Next 25 years.

    FV = PV * (1+i) ^n

    FV = 23,067.90 * (1.074) ^25 = $137,440.62
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “g Bob makes his first $ 800 deposit into an IRA earning 7.4 % compounded annually on his 24th birthday and his last $ 800 deposit on his ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers