At age 18, someone sets up an IRA (individual retirement account) with an APR of 8%. At the end of each month he deposits $30 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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Step 1
First, we need to find the number of months between age 18 and age 65. There are 12 months in a year, so we have: Number of months = (65 - 18) * 12 = 47 * 12 = 564 months Show more…
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