If you place $600 from your first paycheck into a Roth IRA earning 4.00 percent

Question

If you place $600 from your first paycheck into a Roth IRA earning 4.00 percent annual interest, how much will it be worth when you withdraw it in 40 years? repeat the previous problem, except now take $100 from each of your first 12 monthly paychecks and determine what they will collectively be worth in 40 years

Explanation / Answer

so 600 for 40 years 4% intrest ==>intrest= =600*40*4/100= 960$ total= 960+600= 1560 so now 100 from each of 12 mnth so the total intrest would be sum of 12 = 100*4*(480/12+479/12+478/12+476/12+475/12+474/12+473/12+472/12+471/12+470/12+469/12+468/12)/100= 4/12*6162=2054 usd is intrest

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