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Bob makes his first $900 deposit into an IRA earning 8.1% compounded annually on his 24th...

Bob makes his first $900 deposit into an IRA earning 8.1% compounded annually on his 24th birthday and his last $900 deposit on his 43rd birthday (20 equal deposits in all). With no additonal deposits, the money in the IRA continues to earn 8.1% interest compounded annually until Bob retires on his 65th birthday. How much is in the IRA when Bob retires?
(round to the nearest cent as needed)
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Answer #1
Amount in IRA at the time of retirement $231,060.84

WORKINGS

Annual deposit 900
Rate 8.10%
Number of deposits 20
Accumulated value at age of 43 using FV formula $41,644.83
Amount in IRA at the time of retirement at age 65 $231,060.84

Formulae used:

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