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When Sarah turned 18, she took $500 from her savings and opened a
ROTH IRA. Sarah chose to invest her money in a low fee index fund.
Based on historical data, Sarah predicts she can expect an average 7%
return on her money each year. If Sarah's prediction is correct, how
much will her $500 investment be worth when she is 68 years old?
(Assume she makes no other contributions to the account after the first
time)

Respuesta :

The worth of Sarah's investment when she is 68 is $14,728.51.

What is the worth of the investment?

The formula that can be used to determine the worth of the investment is:

FV = P (1 + r)^n

FV = Future value

P = Present value

R = interest rate

N = number of years = 68 - 18 = 50

$500 x (1.07)^50 = $14,728.51

To learn more about future value, please check: https://brainly.com/question/18760477

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