Kayla starts an IRA (Individual Retirement Account) at the age of 22 to save for retirement. She deposits $450 each month. The IRA has an average annual interest rate of 5% compounded monthly. How much money will she have saved when she retires at the age of 65? Round your answer to the nearest cent, if necessary.
Added by Angela W.
Step 1
She starts at age 22 and retires at age 65, so she will be saving for 65 - 22 = 43 years. There are 12 months in a year, so she will be making deposits for 43 years * 12 months/year = 516 months. Now, we can use the formula for the future value of an Show more…
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Kayla starts an IRA (Individual Retirement Account) at the age of 24 to save for retirement. She deposits $300 each month. The IRA has an average annual interest rate of 5%. How much money will she have saved when she retires at the age of 65? Round your answer to the nearest cent, if necessary.
Bailey starts an IRA (Individual Retirement Account) at the age of 24 to save for retirement. She deposits $400 each month. The IRA has an average annual interest rate of 6% compounded monthly. How much money will she have saved when she retires at the age of 65? Round your answer to the nearest cent, if necessary.
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