Question
You are saving for retirement by opening a Roth IRA account. Based on your situation, you believe you can make deposits of $525 every month.
You are saving for retirement by opening a Roth IRA account. Based on your situation, you believe you can make deposits of $525 every month. You assume an annual interest rate of 11%, which is compounded monthly. You will make each deposit at the end of the month.
a. How large will your retirement account be in 30 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 12.34.)
b. What formula would you use to solve problem a? (Write the number next to the formula you would use from your formula sheet)
c. What Interest Rate did you use for your calculation to solve a? (Write your answer as a percentage, rounded to 2 decimal places, e.g. 12.34%)
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