What is the value of a $2,500 payment into an IRA,if the investment earns 12% per year for 15 years?

Question

Quizplus · Accepted Answer

To calculate the future value of the investment in the IRA, we can use the formula FV = PV(1+r)^n, where PV is the present value (or initial payment), r is the annual interest rate as a decimal, and n is the number of years. Plugging in the values given, we get FV = 2500(1+0.12)^15 = $13,684. Therefore, the best choice is B.

What Is the Value of a $2,500 Payment into an IRA,if