Multiple Choice
The solution to this problem requires time value of money calculations. Reference to Tables 9-1 through 9-4 in the text is necessary to complete the calculations. David, a high school math teacher, wants to set up an IRA account into which he will deposit $2,000 per year. He plans to teach for 20 more years and then retire. If the interest on his account is 7% compounded annually, how much will be in his account when he retires?
A) $81,990
B) $74,458
C) $ 4,800
D) $21,118
Correct Answer:
Verified
Correct Answer:
Verified
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