We were given the following information:
Age = 31
Deposit (Principal) = $90
Interest = 5% compounded monthly (12 times every year)
a. At age 60, the time that would have elapsed is: 60 - 31 = 29 years
The amount you will have in the IRA is calculated using the formula below:
Therefore, at age 61, you will have $70,150.36 in your IRA
b. The interest is given as shown below: