Sondra deposits $2,000 in an IRA account on April 15, 2013. Assume the account will earn 3% annually. If she repeats this for the next nine years, how much will she have on deposit on April 14, 2023?
A)$20,600.
B)$20,928.
C)$23,616.
D)$24,715.

Question

Quizplus · Accepted Answer

Sondra makes 10 deposits of $2,000 each. The first deposit will earn interest for 10 years, the second for 9 years, and so on. Using the future value of an annuity formula, the total amount is calculated as $2,000 * [(1.03^10 - 1) / 0.03] = $23,616.

Sondra Deposits $2,000 in an IRA Account on April 15