Final answer:
Based on the calculation with the given monthly deposit and the number of months saved, none of the provided answer choices correctly state Chase's total deposits or interest earned upon retirement. Additional details or a reconsideration of the answer choices may be necessary to accurately address the question.
Step-by-step explanation:
The question is asking us to calculate the total amount of money Chase deposited into his IRA and determine how much money he made in interest by the time he retired at the age of 65. To find the total deposits, we need to multiply the monthly deposit amount by the number of months he deposited the money:
Total Deposits = Monthly Deposit × Number of Months
Chase started saving at age 24 and continued until age 65, which is 41 years of saving. Since there are 12 months in a year, the total number of months is:
Number of Months = 41 years × 12 months/year = 492 months
Now, we calculate the total amount deposited:
Total Deposits = $350/month × 492 months = $172,200
None of the answer choices match this total deposit amount, which indicates that there may have been a miscalculation in the question's answer options, or additional contributing factors to the final balance such as compound interest and investment returns, which are not accounted for in the provided information.
Knowing the total amount at retirement and the total deposits, we can find out how much Chase made in interest:
Interest = Final Amount - Total Deposits
Interest = $1,090,131.43 - $172,200 = $917,931.43
Again, this calculation does not match the provided answer choices, which suggests that there may be more information needed to accurately answer the question or that the provided choices contain an error.
Therefore, with the given information, I am unable to confirm any of the answer choices as correct. The power of compound interest typically plays a significant role in long-term retirement savings, as discussed in the provided background information. An effective retirement strategy, as known from IRA and 401(k) accounts data, involves starting early to take full advantage of the compounding effect.