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    How much is in the IRA when Bob retires?

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    Bob makes his first $1,300 deposit into an IRA earning 7.3% compounded annually on his 24th birthday and his last $1,300 deposited on his 45th birthday (22 equal deposits in all). With no additional deposits, the money in the IRA continues to earn 7.3% interest compounded annually until Bob retires on his 65th birthday. How much is in the IRA when Bob retires?

    Round the final answer to the nearest cent.
    Round amount in IRA after last deposit to the nearest cent.
    Express intermediate terms to 8 decimal places.

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    Solution Summary

    The equation for continual regular deposits is applied to this problem and used to find out how much money is in the IRA when Bob retires.