posted by Anonymous on .
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?
A = P(1+r/n)^nt
250000 = P(1.04)^4*21
P = 250000/1.04^84
P = 9271.28
Solve the problem. Round to the nearest cent.
Joan wants to have $250,000 when she retires in 27 years. How much should she invest annually in her annuity to do this if the interest is 7% compounded annually?