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Debra King is a sales executive at a Baltimore firm. She is 25 years old and...

Debra King is a sales executive at a Baltimore firm. She is 25 years old and plans to invest $2,600 each year in an IRA account until she is 65 at which time she will retire (a total of 40 payments). If Debra invests at the beginning of each year, and the IRA investment will earn 11.90 percent annually, how much will she have when she retires? Assume that she makes the first payment today. (Round factor values to 4 decimal places, e.g. 1.5212 and final answer to 2 decimal places, e.g. 15.25.)

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Expert Solution

rate positively ..

We have to compute the future value here.
we have to use financial calculator to solve this
put in calculator, set the calculator at BEGIN mode
PV 0
PMT -2,600
I 11.90%
N 40
Compute FV $2,170,679.69
ans = $2,170,679.69

jeff jeffy answered 2 years ago
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