Question

Ralph has decided to put $2,400 a year (at the end of each year) into an IRA over his 40 year working life and then retire. What will Ralph have at retirement if the account earns 10 percent compounded annually

Answer 1

$1,062,222.13

Step-by-step explanation:

Calculation to determine What will Ralph have at retirement if the account earns 10 percent compounded annually

Annuity =$2,400

n = 40 years

r = 10%

FVOA=2400*(1+0.1)^40-1/0.1

FVOA=2400∗442.5925557

FVOA=$1,062,222.13

Ralph will have $1,062,223 at retirement