Question

You invest in an IRA that has an average interest rate of return of 7.5% compounded yearly. You open the account with $5000 and invest $4000 at the end of year3, $7000 at the end of year 6 and $10000 at the end of year 10. After being invested for 15 years total (since opening the account) what will the IRA's future value or worth be in dollars? Give your answer in dollars and no cents. Do not enter units or dollar signs.

Answer 1

$ 52,098

Year	Cash flow	Future Value of 1	Future Value of cash flow
a	b	c=1.075^(15-a)	d=b*c
0	$         5,000	2.958877	$       14,794
3	$         4,000	2.38178	$         9,527
6	$         7,000	1.917239	$       13,421
10	$       10,000	1.435629	$       14,356
	Total		$       52,098