Individual retirement account-earns tax-deferred interest

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An individual retirement account, or IRA, earns tax-deferred interest and allows the owner to invest up to $5000 each year. Joe and Jill both will make IRA deposits for 30 years (from age 35 to 65) into stock mutual funds yielding 9.4%. Joe deposits $5000 once each year, while Jill has $96.15 (which is 5000/52) withheld from her weekly pay check and deposited automatically. How much will each have at age 65? (Round your answer to the nearest cent.)

Reference no: EM13809630

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