Question

To save for retirement, you decide to $100 at each month in an ira that pays 5.5% compounded monthly. how much will you have from the ira after 30 years?

Answer 1

To save for retirement, you will have approximately $175,542.68 from the IRA after 30 years.

Step-by-step explanation:

To save for retirement, you decide to save $100 per month in an IRA that pays 5.5% compounded monthly. To calculate the amount you will have after 30 years, you can use the formula for compound interest:

A = P(1 + r/n)^(nt)

Where:
A = the future value of the investment
P = the principal amount ($100)
r = the annual interest rate (5.5% or 0.055)
n = the number of times interest is compounded per year (12)
t = the number of years (30)

Using the formula, you can calculate the future value as follows:
A = 100(1 + 0.055/12)^(12*30)

Calculating the result, you will have approximately $175,542.68 from the IRA after 30 years.