Justin deposits $4,000 into an IRA account that earns an annual interest rate of 6.5%. If he makes no additional deposits, how much money will he have in the account one year later?

The Future value at year time is $4,260

Explanation:

The future value at the end of the year one can be found by using the compounding formula which is as under:

Future Value = Present Value * (1 +r)^n

Future Value  = $4,000 * (1.065)^ 1 = $4,260

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