Question

An Individual Retirement Account​ (IRA) has ​$17 comma 000in​ it, and the owner decides not to add any more money to the account other than interest earned at 4​%compounded daily. How much will be in the account 30years from now when the owner reaches retirement​ age?

Answer 1

Answer: The owner reaches at Rs. 56438.28 after 30 years.

Explanation:

Since we have given that

Sum = Rs. 17000

Rate of compounded daily = 4%

Number of years = 30 years

So, Using "compound interest formula" we get that :

`A=P(1+(r)/(n))^(nt)\\\\A=17000(1+(0.04)/(365))^(365* 30)\\\\A=17000(1.000109589)^(10950)\\\\A=56438.28`

Hence, The owner reaches at Rs. 56438.28 after 30 years.