Question
Ruben invested $1500 per year in an IRA each year for 6 years earning 14% compounded annually. At the end of 6 years he ceased
Ruben invested $1500 per year in an IRA each year for 6 years earning 14% compounded annually.
At the end of 6 years he ceased the IRA payments, but continued to invest his accumulated amount at 14% compounded annually for the next 7 years.
a) What was the value of his IRA at the end of 6 years?
b) What was the value of the investment at the end of the next 7 years?
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Modern Portfolio Theory and Investment Analysis
Authors: Edwin Elton, Martin Gruber, Stephen Brown, William Goetzmann
9th edition
9781118805800, 1118469941, 1118805801, 978-1118469941
