Solve the Problem. Round to the Nearest Cent

question 64

Multiple Choice

Solve the problem. Round to the nearest cent.
-Larry wants to start an IRA that will have $620,000 in it when he retires in 26 years. How much should he invest semiannually in his IRA to do this if the interest is 6% compounded semiannually?

• A) $5094.65
• B) $3969.83
• C) $16,081.74
• D) $5081.65

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Definitions:

Domestic Quantity

The total amount of a goods or services produced and consumed within a country's borders.

Trade

The exchange of goods, services, or both between parties, usually on the basis of comparative advantage.

Absence of Trade

A situation or condition in which there is no exchange of goods or services between people or entities.

Autarky

is an economic system or policy of self-sufficiency where a country does not engage in international trade, relying instead on its own resources.