Question

If you deposit $2,000 at the end of each year into an IRA account that is expected to earn 8% per year simple interest, how much will be in the account in 30 years? (Answer to the nearest dollar)

Answer 1

Calculation of balance in IRA account after 30 years
Year	Annuity	Deposit amount	Interest @ 8% simple interest	Cumulative Interest
1	$2,000.00	$2,000.00	$0.00	$0.00
2	$2,000.00	$4,000.00	$160.00	$160.00
3	$2,000.00	$6,000.00	$320.00	$480.00
4	$2,000.00	$8,000.00	$480.00	$960.00
5	$2,000.00	$10,000.00	$640.00	$1,600.00
6	$2,000.00	$12,000.00	$800.00	$2,400.00
7	$2,000.00	$14,000.00	$960.00	$3,360.00
8	$2,000.00	$16,000.00	$1,120.00	$4,480.00
9	$2,000.00	$18,000.00	$1,280.00	$5,760.00
10	$2,000.00	$20,000.00	$1,440.00	$7,200.00
11	$2,000.00	$22,000.00	$1,600.00	$8,800.00
12	$2,000.00	$24,000.00	$1,760.00	$10,560.00
13	$2,000.00	$26,000.00	$1,920.00	$12,480.00
14	$2,000.00	$28,000.00	$2,080.00	$14,560.00
15	$2,000.00	$30,000.00	$2,240.00	$16,800.00
16	$2,000.00	$32,000.00	$2,400.00	$19,200.00
17	$2,000.00	$34,000.00	$2,560.00	$21,760.00
18	$2,000.00	$36,000.00	$2,720.00	$24,480.00
19	$2,000.00	$38,000.00	$2,880.00	$27,360.00
20	$2,000.00	$40,000.00	$3,040.00	$30,400.00
21	$2,000.00	$42,000.00	$3,200.00	$33,600.00
22	$2,000.00	$44,000.00	$3,360.00	$36,960.00
23	$2,000.00	$46,000.00	$3,520.00	$40,480.00
24	$2,000.00	$48,000.00	$3,680.00	$44,160.00
25	$2,000.00	$50,000.00	$3,840.00	$48,000.00
26	$2,000.00	$52,000.00	$4,000.00	$52,000.00
27	$2,000.00	$54,000.00	$4,160.00	$56,160.00
28	$2,000.00	$56,000.00	$4,320.00	$60,480.00
29	$2,000.00	$58,000.00	$4,480.00	$64,960.00
30	$2,000.00	$60,000.00	$4,640.00	$69,600.00
IRA balance after 30 years = Cumulative Deposit value + Cumulative interest value
IRA balance after 30 years = $60000 + $69600 = $1,29,600