Homework Help: college

Posted by Anonymous on Monday, February 27, 2012 at 12:28am.

Joan wants to start an IRA that will have $250,000 in it when she retires in 21 years. How much should she invest annually in her IRA to do this if the interest is 16% compounded quarterly?

college - Steve, Monday, February 27, 2012 at 12:05pm
A = P(1+r/n)^nt
250000 = P(1.04)^4*21
P = 250000/1.04^84
P = 9271.28

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