Earl Broker is 25 years old, senior in college
and he decides to put $150 every year in a
Roth IRA through Vanguard total stock
market ETF. It gives the return o 10%. Find
the total sum of he will receive when he will
withdraw the money in his 65th birthday.
Answers
Answered by
0
Answer:
Explanation:
Roth IRA work as a compound interest. it help to grow money faster
If Earl invested in the age of 25 year and invested 150 $ every year. So, At the age of 65 her total investment is 6000$
Amount = P ( 1 + r /100 ) ⁿ
Amount = 6000 ( 1 + 10 /100) ⁴⁰
Amount = 6000 ( 1 + o.1 )⁴⁰
Amount = 6000 ( 1.1 ) ⁴⁰
Amount = 6000 ₓ 45.25
Amount = 271500
Total sum she received at the age of 65 is $ 271500
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Answer:
Betsy Parker wants to buy a house in next 10 years and decides to have a SMART goal of having $40,000 as down payment. With the investment that gives interest rate of 5%, how much money she needs to set aside now?
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