Question

A friend creates an IRA (Individual retirement account) with an APR of 6.25%. She starts the IRA at the age of 25 and deposits $50 at the end of each month. How much will her IRA contain when she retires at the age of 65?

Answer 1

65 - 25 = 40
so

A = [P (1 + i/n)^nt - 1 ] / (i/n)
A = [50 (1 + 0.0625 / 12)^12*40 - 1] / (0.0625 / 12)
A = $106,596

answer
$106,596