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Amy is 25. Amys grandmother gave her $4,000 to deposit in an IRA. Assume that the investments in Amys RA cam 10% compounded
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Answer #1

Monthly rate of interest = 10%/12 = 0.83333%

Number of months = 42*12 = 504

Future value = Present value(1+Interest rate)^number of periods

= 4000(1+0.83333%)^504

= $262,138.85

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