IRAs. Lisa and Mark married at age 20. Each year until their 30th birthdays, they put $2,600 into their traditional IRAs. By age 30, they had bought a home and started a family. Although they continued to make contributions to their employer-sponsored retirement plans, they made no more contributions to their IRAs. If they receive an average annual return of 6%, how much will they have in their IRAs by age 60? What was their total investment?
If they receive an average annual return of 6%, the amount they will have in their IRAs by age 60 is $_. (Round to the nearest dollar.)
They have made contribution from age 20 to age 30 i.e. nper(period)=10 year, rate =6%, periodic payment (PMT)=$2600
So,
So, at the age of 30 they will have $34270.07 amount. Their investment amount= 2600*10=$26000
If they do not invest anymore and this fund continues to grow, then the value of fund at 60 year of age i.e. 30 year after= 34270.07*(1+6%)^30=$196829.8 or $1,96,830 (Approx)
So, They will have $1,96,830 in their IRAs account at the age of 60 and their invested amount was $26,000
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