Monthly rate of interest = 6%/12 = 0.5%
Number of months = 40*12 = 480
Future value of annuity = Periodic Amount*[{(1+r)^n - 1}/r]
= 95*[{(1+0.5%)^480 - 1}/0.005]
= $189,191.62
Hence, amount at retirement = $189,191.62
At age 25, someone sets up an IRA (individual retirement account) with an APR of 6%....
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