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An Individual Retirement Account​ (IRA) has ​$21,000 in​ it, and the owner decides not to add any more money to the account other than interest earned at 8​% compounded daily. How much will be in the account 26 years from now when the owner reaches retirement​ age?

Respuesta :

Answer:

There will be approx $167,771.73 in the account.

Step-by-step explanation:

p = $21000

r = 8% or 0.08

n = 365 (assuming 365 days a year)

t = 26

A = ?

Compound interest formula is:

[tex]A=p(1+\frac{r}{n)^{nt} }[/tex]

Substituting values in formula, we get;

[tex]A=21000(1+\frac{0.08}{365)^{365*26} }[/tex]

[tex]A=21000(1.000219)^{9490} }[/tex]

A = $167771.73 approx

Hence, there will be approx $167,771.73 in the account.

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