HW21: Problem 1Previous Problem Problem ListNext ProblemBob makes his first $800 deposit into an IRA earning 7% compounded annually on the day he turns 28 and his last $800 deposit on the day heturns 53 (26 equal deposits in all). With no additional deposits, the money in the IRA continues to earn 7% interest compounded annually until Bobrets on his 65th birthday. How much is the IRA worth when Bob retires?Value of the IRA on Bob's 65th birthday: $Preview My AnswersSubmit AnswersYou have attempted this problem 0 times.You have unlimited attempts remaining.Email instructor

Here's how to solve this problem to find the value of the IRA on Bob's 65th birthday:1. Recognize…

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PFIN (with PFIN Online, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)

6th Edition

ISBN:9781337117005

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter14: Planning For Retirement

Section: Chapter Questions

Problem 8FPE

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HW21: Problem 3 Provious Problem Problem List Next Problem Bob makes his first $1,050 deposit into an IRA eaming 6.5% compounded annually on the day he turns 23 and his last $1,050 deposit on the day he turns 46 (24 equal deposits in al) With no additional deposits, the money in the IRA continues to earn 6.5% interest compounded annually until Bob retires on his 65th birthday. How much is the IRA worth when Bob retires? Value of the IRA on Bob's 65th birthday: (Note: The answer is a dolar amount, should include a dollar sign, and should be accurate to two decimal places).
3.3 9 see attachment
#16 Today is Derek's 25th birthday. Derek has been advised that he needs to have $2,993,861.00 in his retirement account the day he turns 65. He estimates his retirement account will pay 7.00% interest. Assume he chooses not to deposit anything today. Rather he chooses to make annual deposits into the retirement account starting on his 29.00th birthday and ending on his 65th birthday. How much must those deposits be? Submit Answer format: Currency: Round to: 2 decimal places. unanswered not_submitted Attempts Remaining: Infinity
Suppose that at age 25, you decide to save for retirement by depositing $95 at the end of every month in an IRA that pays 4.25% compounded monthly. How much will you have from the IRA when you retire at age 65? Find the interest. A. $118,696; $73,096 B. $120,485; $62,735 C. $146,390; $100,790 D. $119,567; $73,967
Question 1 A- A friend has an IRA with an APR of 5%. She started the IRA at age 30and deposits $1000 per month. How much will her IRA contain when she retires at age 65? Compare that amount to the deposits made over the time period. (In other words, whatis the difference between the amount in her IRA at age 65 and the amount she actuallycontributed from age 30 to 65?) B- Say you need a $400,000 loan. Option 1 is a 30-year loan at an APR of 8%.Option 2 is a 15-year loan at an APR of 7.5%. First, compare the monthly payments andtotal amounts paid over the lifetime of the loan for each of the loan options. Next, discussthe pros and cons of each loan. You may assume that both loans are a fixed rate and havethe same closing costs.
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Problem 11-64 (LO 11-5) Terrance is age 72 and retired. Beginning in 2022, he must start taking minimum distributions from his IRA account that had a balance of $170,000 as of December 31, 2021. Make these three assumptions: his IRA will earn 10% per year based on the annual beginning balance, he will withdraw the minimum distribution on the last day of each calendar year, and only one distribution will be taken in 2022. Required: Calculate the amount of his distribution for years 2022 through 2026 and the ending balance in his IRA account on December 31, 2026. Use Table I, Table III, and Table V. Note: Round "Applicable Life Expectancy" answers to 1 decimal place and other answers to nearest whole dollar value. Use these answers in subsequent computations. Year 2022 2023 2024 2025 2026 (1) IRA Balance At End of Prior Year $ 170,000 (2) Applicable Life Expectancy (3) Required Distribution (4) IRA Earnings (5) Ending Balance
a. 51, 394 b. 51, 594 c. 51, 794 d. 51, 994 e. None of the above
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Problem 7-03 A 45-year-old woman decides to put funds into a retirement plan. She can save $2,000 a year and earn 7 percent on this savings. How much will she have accumulated if she retires at age 65? Use Appendix C to answer the question. Round your answer to the nearest dollar.$ At retirement how much can she withdraw each year for 25 years from the accumulated savings if the savings continue to earn 7 percent? Use Appendix D to answer the question. Round your answer to the nearest dollar.$
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