Answer:
The amount at the end of 45 years will be $1850545.58
Step-by-step explanation:
Consider the provided information.
An individual earns an extra $1500 each year and places this money at the end of each year into an Individual Retirement Account an annual interest rate of 11.7% compounded annually, for 45 years.
Here A = 1500, r= 11.7% = 0.117 and n = 45.
According to future value formula:
[tex]FV= A \times \frac{{(1 + r)^n - 1}}{r}[/tex]
Substitute the respective values in the above formula.
[tex]FV= 1500 \times \frac{{(1 + 0.117)^{45} - 1}}{0.117}[/tex]
[tex]FV= 1500 \times \frac{{145.34255-1}}{0.117}[/tex]
[tex]FV= 1850545.58[/tex]
Hence, the amount at the end of 45 years will be $1850545.58
