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

Algebra ->  Percentages: Solvers, Trainers, Word Problems and pie charts -> 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      Log On


   

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) About Me  (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).
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A(t)=P(1+(r/n))^(nt)
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A(40) = 1500(1+(0.065/1))^(1*40)
A(40) = 1500(1.065)^40
A(40) = $18624.11
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Cheers,
Stan H.
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