In: Finance
Cam deposited $50,000 into an IRA 30 years ago, what is the value of his account today if he earned 8% compounded semiannually?
Cam deposited into IRA account 30 years ago amonting = $50,000
Calculating the Future Value today after 30 years of deposit:-
Where, Invested amount = $50,000
r = Interest rate = 8%
n= no of Years = 30
m = no of times compounding in a year = 2 (compounded semiannually)
Future value = $525,981.37
So, the value of his account today is $525,981.37