N. Ebriate, a college student at a party university, decides to forego beerdrinking and invest the $100 he saves at the end of each month in a mutualfund that is currently earning 11 percent annually. He has a job where heearns income and invests this money in a Roth IRA.a. How much will he have in his fund in 4 years on graduation?b. If he graduates at 22 and leaves this investment in the mutual fund withoutadding any additional funds, how much will he have at age 60?c. If he really enjoys his work and decides to leave the money in the fund untilage 75, how much will he have?d. If he never touches this mutual fund and dies at the age of 90, how muchwill he leave in his estate from only this investment?
N. Ebriate, a college student at a party university, decides to forego beer
drinking and invest the $100 he saves at the end of each month in a mutual
fund that is currently earning 11 percent annually. He has a job where he
earns income and invests this money in a Roth IRA.
a. How much will he have in his fund in 4 years on graduation?
b. If he graduates at 22 and leaves this investment in the mutual fund without
adding any additional funds, how much will he have at age 60?
c. If he really enjoys his work and decides to leave the money in the fund until
age 75, how much will he have?
d. If he never touches this mutual fund and dies at the age of 90, how much
will he leave in his estate from only this investment?
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