You have just made a $1,500 contribution to your individual retirement account.Assume you earn a 12 percent rate of return and make no additional contributions.How much more will your account be worth when you retire in 25 years than it would be if you waited another 10 years before making this contribution?
A)$8,306.16
B)$9,658.77
C)$16,311.18
D)$16,907.17
E)$17,289.75

Question

Quizplus · Accepted Answer

FV = $1,500 × (1 + .12)²⁵ = $25,500.10FV = $1,500 × (1 + .12)¹⁵ = $8,210.35Difference = $17,289.75

You Have Just Made a $1,500 Contribution to Your Individual