LaDonna invested $1,200 each year in an IRA for 12 years in an account that earned 5%
compounded annually. At the end of 12 years, she stopped making payments to the account,
but continued to invest her accumulated amount at 5% compounded annually for the next 11
years.
a. What was the value of the IRA at the end of 12 years?
b. What was the value of the investment at the end of the next 11 years?
c. How much interest did she earn?

Please help explain how you determined the answers

Question

LaDonna invested $1,200 each year in an IRA for 12 years in an account that earned 5% 
compounded annually. At the end of 12 years, she stopped making payments to the account, 
but continued to invest her accumulated amount at 5% compounded annually for the next 11 
years. 
a. What was the value of the IRA at the end of 12 years? 
b. What was the value of the investment at the end of the next 11 years? 
c. How much interest did she earn? 

Please help explain how you determined the answers

fellowroot · Answer

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