Lisa is 21 years old and starting an IRA (individual retirement account). She is going to invest $50 at the beginning of each month. The account is expected to earn 2.5% interest, compounded monthly. How much money, rounded to the nearest dollar, will Lisa have in her IRA if she wants to retire at age 52?

28,052
28,111
40,676
40,731

Help plz

Question

Lisa is 21 years old and starting an IRA (individual retirement account). She is going to invest $50 at the beginning of each month. The account is expected to earn 2.5% interest, compounded monthly. How much money, rounded to the nearest dollar, will Lisa have in her IRA if she wants to retire at age 52?

28,052
28,111
40,676
40,731

Help plz

anonymous · Answer

@darcey

anonymous · Answer

Multiply the amount P by the rate r plus to the amount of time t power$$P _{t}=P(1+r)^{t}$$

anonymous · Answer

You want to find out from age 21 to 52, not from birth so subtract 21 from 52 first to get your t

anonymous · Answer

I tried but i dont get the answer that are in the options??

anonymous · Answer

neither did I, give me a min to review how to do this type of problem.

anonymous · Answer

It should be PRT so 50(.025)(31) but that does not give any of the answers... Im confused :(

anonymous · Answer

maybe re-post it and see if someone else can help you.  I'll keep working on it, and let you know if I figure it out.