Question
Pamela begins planning for retirement at the age of 24 by investing $7,000 in an account with an annual interest of 7.1% compounded quarterly. Pamela
Pamela begins planning for retirement at the age of 24 by investing $7,000 in an account with an annual interest of 7.1% compounded quarterly. Pamela then continues investing in her retirement by making additional investments into the account of $12,000 at the age of 31, $14,500 at the age of 38, $17,000 at the age of 45, and $19,500 at the age of 50. Assume that no additional withdrawals/investments were made from/into the account.
(a) What is the value of Pamela's account when she retires at age 62? (Round your answer to the nearest cent.)
(b) How much did Pamela personally invest into her account?
(c) How much has Pamela made in interest?
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