Answer:
The amount you would have at age 60 in your ROTHIRA can be calculated using the formula for compound interest.
The formula for compound interest is: A = P(1 + r/n)^(nt)
Where:
A = the final amount (the amount you would have at age 60)
P = the principal amount (the initial investment, which is $2,500.00)
r = the annual interest rate (which is 12%, or 0.12 as a decimal)
n = the number of times interest is compounded per year (since it's not specified, let's assume it's compounded annually)
t = the number of years (60 - 18 = 42 years)
Plugging in the values, we get:
A = 2500(1 + 0.12/1)^(1*42)
A = 2500(1 + 0.12)^42
Now we can calculate the final amount using a calculator or a spreadsheet program:
A = 2500(1.12)^42
A ≈ $88,950.56
Therefore, if you start with $2,500.00 in your ROTHIRA at 18 years old and it earns 12% interest per year, you would have approximately $88,950.56 at age 60.
Explanation:
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