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Directions:
1. Solve the following problems. Write the solutions and explanations.
2. Show your work AND explain your reasoning using complete English sentences. Explanations must directly follow the solution for each part of the problem.
Problem:
Meagan invests $1,200 each year in an IRA for 12 years in an account that earned 5% compounded annually. At the end of 12 years, she stopped making payments to the account, but continued to invest her accumulated amount at 5% compounded annually for the next 11 years.
a. What was the value of the Ira at the end of 12 years?
b. What was the value of the investment at the end of the next 11 years?
c. How much interest did she earn?
Please help with breaking down this explanation.
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