(Saving for retirement-future value of an annuity) Selma and Patty Bouvier are twins and both work at the Springfield DMV. Selma and Patty Bouvier decide to save for retirement, which is 35 years away. They'll both receive an annual retum of 6 percent on their investment over the next 35 years. Selma invests $2,500 per year at the end of each year only for the first 10 years of the 35-year period-for a total of $25,000 saved. Patty doesn't start saving for 10 years and then saves $2,500 per year at the end of each year for the remaining 25 years-for a total of $62,500 saved. How much will each of them have when they retire? a. How much will Selma have when she retires? (Round to the nearest cent.) ELE
(Saving for retirement-future value of an annuity) Selma and Patty Bouvier are twins and both work at the Springfield DMV. Selma and Patty Bouvier decide to save for retirement, which is 35 years away. They'll both receive an annual retum of 6 percent on their investment over the next 35 years. Selma invests $2,500 per year at the end of each year only for the first 10 years of the 35-year period-for a total of $25,000 saved. Patty doesn't start saving for 10 years and then saves $2,500 per year at the end of each year for the remaining 25 years-for a total of $62,500 saved. How much will each of them have when they retire? a. How much will Selma have when she retires? (Round to the nearest cent.) ELE
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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Question
original answer i think is correct us $137,161.28
Transcribed Image Text:(Saving for retirement-future value of an annuity) Selma and Patty Bouvier are twins and both work at the Springfield DMV. Selma and Patty Bouvier decide to save for retirement, which is 35
years away. They'll both receive an annual return of 6 percent on their investment over the next 35 years. Selma invests $2,500 per year at the end of each year only for the first 10 years of
the 35-year period-for a total of $25,000 saved. Patty doesn't start saving for 10 years and then saves $2,500 per year at the end of each year for the remaining 25 years-for a total of $62,500
saved. How much will each of them have when they retire?
a. How much will Selma have when she retires?
(Round to the nearest cent.)
Transcribed Image Text:(19) Selma and Patty Bounier
are twins and both work at the
Springfield Dmv. Selma and Patty
Bouvier decirle to save for retirement
which is 35 years aweng.
| N = 10
PV = 0
PMT=2500
=
N = 25
IIY = 6
PV=321951.99
PMT= 0
|FV = 141,425,68
N=25
از
INY = 6
PV = O
PMT=2500
|FV = 132, 161.28
=FV (0.10₁6₁-2500, 0)
19,289.03
= FV (0.06, 25, 0-
32951.99)
-
= FV (0.06, 25-2520,0)
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