You set up an IRA with an APR of 2.5% at age 35. At the end of each month, you deposit $102 in the account. How much will the IRA contain when you retire at the age of 65? a. $54,607.49 c. $56,208.32 b. $55,205.33 d. $57,610.48

c. $56,208.32

Step-by-step explanation:

Since each deposit is made at the end of the month, it is an ordinary annuity.

The future value of an ordinary annuity with deposits P made regularly k times each year for n years, with interest compounded k times per year at an annual rate r, is given as:

In the given case,

The Monthly Savings, P =$102

Period,k=12 Months

APR=2.5%

Therefore:

n=65-35=30 years

Therefore, the Future Value at 65 years of age

=$56209.82

Due to difference in approximation, the closest option is (c.) $56,208.32

the nearest power is 1.651.

means 7482 to the 1.651th power is almost equal to 2489287