Question

Lynne is 25 years old and starting and IRA (individual retirement account). She is going to invest $150 at the beginning of each month. The account is expected to earn %5.5 interest, compounded monthly. How much money rounded to the nearest dollar will lynne have in her IRA if she wants to retire at age 65

Answer 1

$262,353

Explanation:

Dont have an explanation but it is the right answer, Thanks to the **** that put the wrong answer.

Answer 2

The future amount of Lynnes retirement account can be computed using the formula of amortization or annuity:
P = A[(1+i)^n-1)]/(i)
A= amortization
i= 5.5%
n = 40*12 = 480
Subsituting the variables in th formula, Future amount of Lynne in 40 years is equal to
P = $29,082.71