Value of the investment


Problem:

Hal invested $2000 per year in an IRA each year for 6 years earning 15% compounded annually. At the end of 6 years he ceased the IRA payments, but continued to invest his accumulated amount at 15% compounded annually for the next 5 years.

Required:

Question 1: What was the value of his IRA at the end of 6 years?

Question 2: What was the value of the investment at the end of the next 5 years?

Note: Explain all steps comprehensively.

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Accounting Basics: Value of the investment
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