Question
Ruben invested $1400 per year in an IRA each year for 10 years earning 4% compounded annually. At the end of 10 years he ceased
Ruben invested $1400 per year in an IRA each year for 10 years earning 4% compounded annually.
At the end of 10 years he ceased the IRA payments, but continued to invest his accumulated amount at 4% compounded annually for the next 7 years.
a) What was the value of his IRA at the end of 10 years?
Answer = $
b) What was the value of the investment at the end of the next 7 years?
Answer = $
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Fundamentals of Financial Management
Authors: Eugene F. Brigham
Concise 9th Edition
1305635937, 1305635930, 978-1305635937
