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10. Ruby will retire in 20 years and this year she wants to fund an amount of $15,000 co become available in 20 years. How much does he have to deposit into a pension plan earning 7% annually?

10. Ruby will retire in 20 years and this year she wants to fund an amount of $15,000 co become available in 20 years. How much does he have to deposit into a pension plan earning 7% annually?

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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10. Ruby will retire in 20 years and this year she wants to fund an amount of $15,000 to become available in 20 years. How much does he have to deposit into a pension plan earning 7% annually? • Previous Next
Transcribed Image Text:10. Ruby will retire in 20 years and this year she wants to fund an amount of $15,000 to become available in 20 years. How much does he have to deposit into a pension plan earning 7% annually? • Previous Next
11. Hal Thomas, a 25-year-old college graduate, wishes to retire at age 65. To supplement other sources of retirement income, he can deposit $2,000 each year into a tax-deferred individual retirement arrangement (IRA). The IRA will be invested to earn an annual return of 10%, which is assumed to be attainable over the next 40 years. Question: If Hal makes annual end-of-year $2,000 deposits into the IRA, how much will he have accumulated by the end of his 65th year?
Transcribed Image Text:11. Hal Thomas, a 25-year-old college graduate, wishes to retire at age 65. To supplement other sources of retirement income, he can deposit $2,000 each year into a tax-deferred individual retirement arrangement (IRA). The IRA will be invested to earn an annual return of 10%, which is assumed to be attainable over the next 40 years. Question: If Hal makes annual end-of-year $2,000 deposits into the IRA, how much will he have accumulated by the end of his 65th year?
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