Question

You want to deposit 6% of $53,070.00 each year into an IRA(Individual Retirement Account). After finding you will deposit $3,184.2 in one year, find how much you will deposit per month.

Answer 1

$265.35

Step-by-step explanation:

First, recall that:

`\begin{gathered} 6\%\text{ of }\$53,070.00=0.06*\$53,070.00 \\ =$\$3,184.2$ \end{gathered}`

Since the annual deposit is $3,184.2, divide by 12 to find the monthly deposit.

`\begin{gathered} \text{Monthly Deposit=}(3,184.2)/(12) \\ =\$265.35 \end{gathered}`

Each month, the amount to be deposit is $265.35.