At age 22​, someone sets up an IRA​ (individual retirement​ account) with an APR of 8​%. At the end of each month he deposits ​$35 in the account. How much will the IRA contain when he retires at age​ 65? Compare that amount to the total deposits made over the time period.

Question
Asked Feb 17, 2019
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At age 22​, someone sets up an IRA​ (individual retirement​ account) with an APR of 8​%. At the end of each month he deposits ​$35 in the account. How much will the IRA contain when he retires at age​ 65? Compare that amount to the total deposits made over the time period.

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Expert Answer

Step 1

Application of compound interest formula to the calculation of retirement fund.

Step 2

The annual investment is $35 times 12 is $420.

Annual interest rate ...

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