You set up an ira (individual retirement account) with an apr of 5% at age 25. at the end of each month, you deposit $75 in the account. how much will the ira contain when you retire at the age of 65? a. $114,451.51 c. $114,135.20 b. $115,625.02 d. $115,230.06

Option a) $114,451.51

Step-by-step explanation:

We are given that you set up an IRA (Individual retirement account) with an APR of 5% at age 25. At the end of each month, you deposit $75 in the account

we need to find the amount of money IRA contain when you retire at the age of 65

Here we need to find the total savings , so we need to apply the formula for future value of annuity

It says :

Here, FV = Future value( Savings)

         P = $75  (Monthly deposit)

         r = 5% =0.05      (APR)

         n = 12 ( as we are compounding monthly)

         t = 65-25 = 40 ( number of years )

So plugging in all the values in the formula , we get

Simplifying further, we get

Plugging in the given values in the calculator and simplifying, we get

FV=$114,451.51

So correct option is a

Hope it was helpful !:)

k

step-by-step explanation:

domit