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

- college -
**Nick**, Wednesday, March 26, 2014 at 3:11pm
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?

A) $1861.10

B) $3356.43

C) $2672.15

D) $937.86

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