Answered

Find the best solutions to your questions at Westonci.ca, the premier Q&A platform with a community of knowledgeable experts. Discover a wealth of knowledge from experts across different disciplines on our comprehensive Q&A platform. Our platform provides a seamless experience for finding reliable answers from a network of experienced professionals.

When Sarah turned 18, she took $500 from her savings and opened a
ROTH IRA. Sarah chose to invest her money in a low fee index fund.
Based on historical data, Sarah predicts she can expect an average 7%
return on her money each year. If Sarah's prediction is correct, how
much will her $500 investment be worth when she is 68 years old?
(Assume she makes no other contributions to the account after the first
time)

Sagot :

The worth of Sarah's investment when she is 68 is $14,728.51.

What is the worth of the investment?

The formula that can be used to determine the worth of the investment is:

FV = P (1 + r)^n

FV = Future value

P = Present value

R = interest rate

N = number of years = 68 - 18 = 50

$500 x (1.07)^50 = $14,728.51

To learn more about future value, please check: https://brainly.com/question/18760477

Thanks for using our service. We're always here to provide accurate and up-to-date answers to all your queries. Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. We're here to help at Westonci.ca. Keep visiting for the best answers to your questions.