Final answer:
Blake deposited a total of $172,200 into his IRA by contributing $350 monthly for 41 years. Upon retirement, his total savings was $810,474.57, which means he earned $638,274.57 in interest.
Step-by-step explanation:
Blake started an IRA at age 24 and contributed $350 monthly until he retired at age 65. Over the course of his investment, Blake made a series of regular deposits into his retirement account. To determine the total amount deposited, we multiply the monthly deposit amount by the number of months contributed.
Blake retired at 65, having contributed for 41 years (65-24 years). Multiplying 41 years by 12 months per year gives us 492 months.
Total Deposits = Monthly Deposit × Number of Months
Total Deposits = $350 × 492
Total Deposits = $172,200
To find out how much Blake made in interest upon retirement, we subtract the total amount deposited from the final retirement savings.
Interest Earned = Total Retirement Savings - Total Deposits
Interest Earned = $810,474.57 - $172,200
Interest Earned = $638,274.57
Therefore, Blake deposited $172,200 and made $638,274.57 in interest upon retirement.