Question
Bob makes his first $1,000$1,000 deposit into an IRA earning 7.57.5% compounded annually on the day he turns 27 and his last $1,000$1,000 deposit on
Bob makes his first $1,000$1,000 deposit into an IRA earning 7.57.5% compounded annually on the day he turns 27 and his last $1,000$1,000 deposit on the day he turns 44 (18 equal deposits in all.) With no additional deposits, the money in the IRA continues to earn 7.57.5% interest compounded annually until Bob retires on his 65th birthday. How much is the IRA worth when Bob retires?
Value of the IRA on Bob's 65th birthday:
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Managerial Accounting
Authors: Ray Garrison, Eric Noreen, Peter Brewer
16th edition
978-1259307416
