Question

At the age of 22, Vicki opened an IRA. At the beginning of each year, she deposits $1100 into her IRA, which earns 9% annual interest compounded continuously. Determine how much Vicki has in her account in 43 years when she retires at age 65. (Round your answer to the nearest cent.)

Answer 1

$51,557.00

Explanation:

1100 times 9% = 99 a year

99 times 43 = 4257

1100 times 43 =47,300

then you add 47,300 + 4257 = 51,557

you take your total that she put into the ira and multiply it by 9%

then you multiply that total by the number of years before she retires which is 43

so 99 times 43 = 4257

then you will multiply how much she put in the ira at the beginning of the year which is 1100 by the 43 years before she retires which is 47,300

then you add your totals together

4257 + 47,300 = 51,557