Question

Please help!!!
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?

Answer 1

Do you have an accumulation formula for payments at the beginning of each period? We can build it if you don't have it.

Answer 2

I don't

Answer 3

http://ncalculators.com/interest/compound-interest-calculator.htm

Answer 4

do you have choices

Answer 5

Can you help me solve this

Answer 6

Yes they are...
$108,024.51
$125,609.25
$191,398.49
$265,037.90

Answer 7

http://www.free-online-calculator-use.com/savings-account-interest-calculator.html

Answer 8

I found this website that is more accurate to your question, because I didn't realize about the monthly deposit of $200

Answer 9

It gives me 192,067

Answer 10

so the closer to that number is c

Answer 11

I need help solving it I can't pull the calculator up on my phone

Answer 12

You'll need a calculator with an exponent button.

Answer 13

now it gives me the 191,398

Answer 14

I was adding 200 extra on the investment

Answer 15

Thanks so much can you help with a few more

Answer 16

if you go to that website you get the answer, try it and let me know, on starting amount just put 0

Answer 17

yw :)

Answer 18

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?

Okay, here we go.

65 - 24 = 41
41 years or 41*12 ==> 492 months.

i = 2.95% -- Annual Interest Rate
j = I/12 = 0.002458333 -- Monthly Interest Rate
r = 1+j -- Monthly Accumulation Factor.

We can learn how to do ALL such problems if you can admit to getting that far and then clearing two more small hurdles.