Shaylea, age 22, just started working full-time and plans to deposit $4,500 annually into an IRA earning 9 percent interest compounded annually. How much would she have in 20 years, 30 years, and 40 years? If she changed her investment period and instead invested $375.00 monthly, and the investment also changed to monthly compounding, how much would she have after the same three time periods? Comment on the differences over time. Click the table icon to view the future value annuity table E With annual investments and compounding, after 20 years, Shaylea would have $. (Round to the nearest cent.)
Shaylea, age 22, just started working full-time and plans to deposit $4,500 annually into an IRA earning 9 percent interest compounded annually. How much would she have in 20 years, 30 years, and 40 years? If she changed her investment period and instead invested $375.00 monthly, and the investment also changed to monthly compounding, how much would she have after the same three time periods? Comment on the differences over time. Click the table icon to view the future value annuity table E With annual investments and compounding, after 20 years, Shaylea would have $. (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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Transcribed Image Text:Shaylea, age 22, just started working full-time and plans to deposit $4,500 annually into an IRA earning 9 percent interest compounded annually. How much would she have in 20 years, 30 years, and 40 years? If she changed her
investment period and instead invested $375.00 monthly, and the investment also changed to monthly compounding, how much would she have after the same three time periods? Comment on the differences over time.
Click the table icon to view the future va
Data table
With annual ivestments and compound
24.215
27.152
30.324
33.750
37.450
41.446
45.762
50.423
26.019
| 14
| 15
19.599
21.579
23.657
27.975
31.772
35.950
40.545
45.599
51.159
57.275
64.002
21.015
23.276
30.095
34.405
22.550
32.393
37.280
17.086|
18.292|
20.024
21.825
23.698
25.645
18.599
25.129
29.361
16
20.157
25.673
27.888
33.003
39.190
42.753
17
21.762
25.840
28.213
30.840
36.974
44.501
48.884
28.132
30.539
33.066
35.719
38.505
41.430
44.502
47.727
18
23.414
30.906
33.999
41.301
50.396
55.750
19
25.117
27.671
33.760
37.379
46.018
56.939
63.440
29.778
31.969
34.248
36.618
39.083
41.646
56.085
36.786
39.993
43.392
46.996
50.816
54.865
40.995
44.865
72.052
81.699
92.503
104.603
51.160
56.765
20
26.870
64.203
21
28.676
72.265
55.457
60.893
66.765
73.106
113.283
30.537
71.403
81.214
91.148
102.174
22
49.006
62.873
79.543
88.497
98.347
164.494
442.593
1163.909
23
32.453
53.436
69.532
24
34.426
58.177
76.790
118.155
133.334
241.333
36.459
47.575
75.401
112.797
63.249
94.461
25
84.701
114.413
136.308
199.021
581.826
1668.771
30
66.439
79.058
95.026
152.667
120.800
209.348
154.762
290.336
199.635
406.529
259.057
573.770
337.882
815.084
40
767.091
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Transcribed Image Text:Shaylea, age 22, just started working full-time and plans to deposit $4,500 annually into an IRA earning 9 percent interest compounded annually. How much would she have in 20 years, 30 years, and 40 years? If she changed her
investment period and instead invested $375.00 monthly, and the investment also changed to monthly compounding, how much would she have after the same three time periods? Comment on the differences over time.
Click the table icon to view the future value annuity table
With annual investments and compounding, after 20 years, Shaylea would have $. (Round to the nearest cent.)
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