(Related to The Business of Life: Saving for Retirement) (Future value of an ordinary annuity) You are graduating from college at the end of this semester and after reading the The Business of Life box in this chapter, you have decided to invest $4,400 at the end of each year into a Roth IRA for the next 43 years. If you earn 9 percent compounded annually on your investment, how much will you have when you retire in 43 years? How much will you have if you wait 10 years before beginning to save and only make 33 payments into your retirement account? How much will you have when you retire in 43 years? $ (Round to the nearest cent.) How much will you have if you wait 10 years before beginning to save and only make 33 payments into your retirement account? $ (Round to the nearest cent.)
(Related to The Business of Life: Saving for Retirement) (Future value of an ordinary annuity) You are graduating from college at the end of this semester and after reading the The Business of Life box in this chapter, you have decided to invest $4,400 at the end of each year into a Roth IRA for the next 43 years. If you earn 9 percent compounded annually on your investment, how much will you have when you retire in 43 years? How much will you have if you wait 10 years before beginning to save and only make 33 payments into your retirement account? How much will you have when you retire in 43 years? $ (Round to the nearest cent.) How much will you have if you wait 10 years before beginning to save and only make 33 payments into your retirement account? $ (Round to the nearest cent.)
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
Problem 1PS
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ques 14
Transcribed Image Text:(Related to The Business of Life: Saving for Retirement) (Future value of an ordinary annuity) You are graduating from college at the end of this semester and after reading the The Business of Life box in this chapter, you have decided to invest $4,400 at the end of each year into a Roth IRA
for the next 43 years. If you earn 9 percent compounded annually on your investment, how much will you have when you retire in 43 years? How much will you have if you wait 10 years before beginning to save and only make 33 payments into your retirement account?
How much will you have when you retire in 43 years?
$ (Round to the nearest cent.)
How much will you have if you wait 10 years before beginning to save and only make 33 payments into your retirement account?
$ (Round to the nearest cent.)
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