If You Open an IRA and Invest $3,000 a Year

question 5

Essay

If you open an IRA and invest $3,000 a year (at the end of the year), how much will be in the account after twenty-five years if the funds earn 5 percent annually? How much would be in the account if payments were made at the beginning of the year?

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Definitions:

Taxonomy

Naming and classifying species in a systematic way.

Differentiation

The process by which unspecialized cells become specialized into one of the many cell types that make up an organism.

Scientific Method

A systematic approach to research and knowledge acquisition, involving observation, hypothesis, experimentation, analysis, and conclusion.

Hypotheses

Proposed explanations or predictions for a phenomenon, made as a starting point for further investigation, that can be tested through experimentation and observation.