Ronald is 26 years old and starting an IRA (individual retirement account). He is going to invest $200 at the beginning of each month. The account is expected to earn 2.75% interest, compounded monthly. How much money will Ricky have in his IRA when he retires, at age 65?

Question

anonymous · Answer

pmt	= - 200
i	= 0.002291667(0.0275/12 as componded mothly)
pv	=0
n	=480( 40*12 as compounded monthly)
fv	= 174,979.37 amount that ronal will get.

Use excel with =fv function and put inputs you`ll get the answers.

anonymous · Answer

$167,868.30