Asked May 15, 2019
At the age of 33​, to save for​ retirement, you decide to deposit $80 at the end of each month in an IRA that pays 44​% compounded monthly
A) You will have approximately $ ? in the IRA when you retire.
​(Do not round until the final answer. Then round to the nearest dollar as​ needed.)
B) The interest is approximately ​$ ?
​(Use the answer from part a to find this answer. Round to the nearest dollar as​ needed.)

Expert Answer

Step 1

NOTE: There is some information missing in the question. The retirement age in not mentioned in the question. Since the age of retirement is missing in the question, so we are randomly assuming that the retirement age as 65 years.

Step 2


Calculation of Amount in the account after retirement at the end of 65 years:

There are 32 years till the retirement date. Which means we can deposit $80 for 32 years.  The amount in the retirement account can be calculated using a excel function =FV, which denotes the future value of any investment which is shown below:

Step 3

The excel working is shown below:


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