At the age of 26, to save for retirement, you decide to
deposit $10 at the end of each month in an IRA that pays
6.5% compounded monthly.
a. Use the following formula to determine how much
you will have in the IRA when you retire at age 65.
A =
P[(1 + r)²-1]
r
or
nt
^. *((1+4) ™-1)
A =
A
b. Find the interest.
H
in the IRA
a. You will have approximately
when you retire.
(Do not round until the final answer. Then round
to the nearest dollar as needed.)