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James Aru, a 25-year-old university graduate, wishes to retire at age 60. To supplement other sources of retirement income, he wishes to deposit $300 each

James Aru, a 25-year-old university graduate, wishes to retire at age 60. To supplement other sources of retirement income, he wishes to deposit $300 each quarter into a tax-deferred individual retirement arrangement (IRA). The IRA has a yield rate of 8%, which is assumed to be attainable over the next 35 years, and interest is compounded monthly.

  1. If James makes a periodic end-of-quarter $300 deposits into the IRA, how much will he have accumulated on his 60th Birthday? (5 marks)

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