SOLUTION: An individual Retirement Account (IRA) has $18,000 in it, and the owner decides not to add any more money to the account other than interest earned at 5% compounded daily. How much

Algebra ->  Customizable Word Problem Solvers  -> Finance -> SOLUTION: An individual Retirement Account (IRA) has $18,000 in it, and the owner decides not to add any more money to the account other than interest earned at 5% compounded daily. How much      Log On

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Question 192059: An individual Retirement Account (IRA) has $18,000 in it, and the owner decides not to add any more money to the account other than interest earned at 5% compounded daily. How much will be in the account 38 years from now when the owner reaches retirement age?
Answer by jojo14344(1513) About Me  (Show Source):
You can put this solution on YOUR website!


Working Eqn, ---> F=P%281%2Bi%2Fm%29%5E%28mn%29, wheresystem%28F=Future%2CP=Principal%2Ci=interest%2Cm=compounded%2Cn=years%29


F=18000%281%2B%280.05%2F365%29%29%5E%28365%2A38%29
F=18000%281%2B0.0001369863%29%5E13870
F=18000%281.000137%29%5E13870=1800%2A6.685
red%28F=120330.44%29, Answer

Thank you,
Jojo