Ricky is 24 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 2.95% interest, compounded monthly. How much money will Ricky have in his IRA when he retires, at age 65?

$108,024.51

$125,609.25

$191,398.49

$265,037.90

Question

Ricky is 24 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 2.95% interest, compounded monthly. How much money will Ricky have in his IRA when he retires, at age 65?

 $108,024.51

 $125,609.25

 $191,398.49

 $265,037.90

amistre64 · Answer

sounds like a future value of an annuity due