Cam deposited $50,000 into an IRA 30 years ago, what is thevalue of his account...

Cam deposited $50,000 into an IRA 30 years ago, what is the value of his account today if he earned 8% compounded semiannually?

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Expert Solution

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

jeff jeffy answered 2 years ago

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