QuestionA 20-year-old deposits \$55 monthly in an IRA at$4\%$ APR. What is the amount at age 65 compared to total deposits?

Studdy Solution
Calculate the total deposits.
$$Total\, deposits = \$55 \\times540 = \$29,700$$The IRA will contain $165,432.17 when the person retires, compared to the total deposits of$29,700 over the time period.