help
Lynne is 25 years old and starting an IRA (individual retirement account). She is going to invest $150 at the beginning of each month. The account is expected to earn 5.5% interest, compounded monthly. How much money, rounded to the nearest dollar, will Lynne have in her IRA if she wants to retire at age 65?

$129,846

$131,036

$261,156

$262,353

Question

help
Lynne is 25 years old and starting an IRA (individual retirement account). She is going to invest $150 at the beginning of each month. The account is expected to earn 5.5% interest, compounded monthly. How much money, rounded to the nearest dollar, will Lynne have in her IRA if she wants to retire at age 65?
 
$129,846 

$131,036 

$261,156 

$262,353

anonymous · Answer

@mathmate @mathstudent55

anonymous · Answer

@ivettef365

ivettef365 · Answer

http://www.thecalculatorsite.com/finance/calculators/compoundinterestcalculator.php

anonymous · Answer

im not getting any of my answer choices @ivettef365

ivettef365 · Answer

enter info as follows:

Base amount = 0
annual interest = 5.5
Calculation period = 40 years
regular monthly deposit = 150
Compound interval = monthly

calculusxy · Answer

I just have one question. As it has said about 5.5% of the interest is going to compound monthly, her interest of 5.5% will be added to $150?

anonymous · Answer

@ivettef365 i got $ 262,352.90

ivettef365 · Answer

right, the interest of 5.5% will be added to 150, so the first month would be 
150 x 5.5% = 158.26 now the second month will be added 150, so now would be
158.26 + 150 = 308.26 x 5.5%   and so on

ivettef365 · Answer

that is what I got as well