Complete question :
You have decided to stop drinking Starbucks coffee and invest that money in an IRA. If you deposit $492 each month earning 6% interest, how much will you have in the account after 40 years?
Answer:
$250,329.60
Step-by-step explanation:
Given:
Principal, P= $492 per month
= $492 * 12 = $5,904 per year
Rate, R= 6%
Time, T= 40 years
Let's first find the amount after 40 years.
Amount = 5940 * 40 = $236,160
The interest after 40 years =
[tex] Interest = \frac{PRT}{100} = \frac{5904 * 6 * 40}{100}[/tex]
Interest = $14,169.60
The total amount I will have in my account after 40 years:
Amount + interest
= $236,160 + $14,169.60
= $250,329.60
