Question

IAn Individual Retirement Account (IRA) has $22,000 in it, and the owner decides not to add any more money to the account other than interest earned at 8%compounded daily. How much will be in the account 29 years from now when the owner reaches retirement age?There will be in the account.(Round to the nearest cent. Use a 365 day year.)

Answer 1

Given:

`\begin{gathered} \text{Principal (P)= \$22000} \\ \text{Rate of interest= 8\%} \\ n=29\text{ years} \end{gathered}`
`\begin{gathered} \text{Amount in the account after 9 years=}P(1+(r)/(365))^(365* n) \\ =22000(1+(8)/(100*365))^(365*29) \\ =22000(1+0.0002)^(10585) \\ =22000(8.3044) \\ =\text{ \$182696}.80 \end{gathered}`

Amount in the account after 29 years is $182696.80