At age 32 you open an IRA with $2500 and add $750 per month. Assume an annual rate of 6% and use the balance formula below:

(a) What is the value of the account at age 60?

(b) When will the account contain $500,000?. (solve for k when V(k) = 500,000

(c) If you stop monthly contributions at age 40, then transfer the balance into a continuous compounding account earning 3.5% annual interest, when will the account value reach $500,000?

The balance formula: Invest L dollars at r% annual interest and make equal monthly contributions of d dollars, then the balance after k months is V(k).