In the given ordinary annuity, interest is compounded with every payment, and payment is made at the end of compounding period.
The individual retirement account, or IRA, earns tax-deferred interest and permits owner to invest up to $5000 each year. Joe and Jill both will make IRA deposits for thirty years (from age 35 to 65) into stock mutual funds yielding 9.1%. Joe deposits 5000 once every year, while Jill has 96.15 (that is 5000/52) withheld from the weekly paycheck and deposited automatically. How much will every one have at age 65?