SOLUTION: Starting at age 25, Tracy invests $1500 at the end of each year in an IRA with an APR of 6.5% compounded annually. How much is in Tracy�s retirement account when she retires at the

Question 628323: Starting at age 25, Tracy invests $1500 at the end of each year in an IRA with an APR of 6.5% compounded annually. How much is in Tracy�s retirement account when she retires at the age of 65? (Assume the 40th and last deposit generates no interest).
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
Starting at age 25, Tracy invests $1500 at the end of each year in an IRA with an APR of 6.5% compounded annually. How much is in Tracy�s retirement account when she retires at the age of 65? (Assume the 40th and last deposit generates no interest).
-----
A(t)=P(1+(r/n))^(nt)
---
A(40) = 1500(1+(0.065/1))^(1*40)
A(40) = 1500(1.065)^40
A(40) = $18624.11
=========================
Cheers,
Stan H.
=========================
RELATED QUESTIONS
I have an idea of how to do this problem but would appreciate help to make sure I am... (answered by Theo)

Twins graduate from college together and start their careers. Twin 1 invests $1500 at the (answered by CPhill)

f a merchant deposits $1,500 annually at the end of each tax year in an IRA account... (answered by lynnlo)

AT AGE 25, TO SAVE FOR RETIREMENT, YOU DECIDE TO DEPOSIT $75 INTO AN IRA AT THE END OF... (answered by Theo)

At age 25, to save for retirement, you decide to deposit $75.00 into an IRA at the end of (answered by ikleyn)

suppose that you set up a new ira that pay an apr of 5% compounded monthly. if you... (answered by Theo)

If a merchant deposits $2,000 annually at the end of each tax year in an IRA account... (answered by josmiceli)

Emily Fields makes annual deposits of $1100 to an an IRA earning 15% compounded annually... (answered by ikleyn)

Emily Fields makes annual deposits of $1100 to an an IRA earning 15% compounded annually (answered by Theo)