a)Calculate Jane’s current retirement account balance on her 45th birthday. b)Based on your answer in a), how long from now does Jane need to wait to accumulate $5.5 million in her retirement account? c)At the time when Sue places her 20th annual deposit , how old will Sue be?
Jane and Sue are twins. Today is their 45th birthday. They both invested in a retirement account with 9 percent compounded annually.
Jane began to deposit $60000 per year on her 24th birthday for a total of 8 annual deposits, whereas Sue started her first deposit on her 35th birthday, for a total of 20 annual deposits. They both then do nothing by putting aside the account balance till their planned retirement age.
(answer to 2 decimal places)
a)Calculate Jane’s current retirement account balance on her 45th birthday.
b)Based on your answer in a), how long from now does Jane need to wait to accumulate $5.5 million in her retirement account?
c)At the time when Sue places her 20th annual deposit , how old will Sue be?
d)If Sue planned to accumulate $5.5 million on her 65th birthday, calculate the amount of her annual deposit.
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