<PRE><B>Question 999919</B>
Here is my problem: At age 27, Lauren Johnson deposited $1,000 into an IRA, in which it earns 7 7/8 % compounded monthly. 
(a) What will it be worth when she retires at 65?
65-27 = 38 years
7 7/8% = 7.875/100 = 0.07875
A(38) = 1000*(1+(0.07875/12))^(12*38) 
A(38) = 1000*(1.00656)^(456)
A(38) = 1000*19.74151
A(38) = $
19,741.51
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(b) How much would the IRA be worth if Lauren didn&#39;t set it up until she was 35? How would you solve this? Thank You!
65-35 = 30
Find A(30)
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Cheers,
Stan H. 
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