Joe wants to start an SEP-IRA that will have $460,000 in it when he retires in 15 years. How much should he invest semiannually in his IRA to do this if the interest is 15% compounded semiannually?

$4,448.77

Explanation:

time until retirement = 15 years x 2 semiannual contributions = 30 payments

interest rate =15% / 2 = 7.5%

future value = $460,000

we can use the future value of an annuity formula:

future value = payment x annuity factor

FV annuity factor 7.5%, 30 periods = 103.3994

payment = future value / annuity factor

payment = $460,000 / 103.3994 = $4,448.77

answer; i believe both technician (a) and (b) are correct; /// good luck