The AGI of the Newtons, a married couple, is $199,000 this year. They would like to contribute to a Roth IRA. 1. What is the maximum amount this couple can contribute to a Roth IRA? Show your calculations using Microsoft Excel. 2. Now suppose that the Newtons will report AGI of less than $196,000 and put $12,000 each year into their Roth IRA for 20 years, earning an annual return of 5%. What future value will accumulate in their Roth at the end of this period?
The AGI of the Newtons, a married couple, is $199,000 this year. They would like to contribute to a Roth IRA. 1. What is the maximum amount this couple can contribute to a Roth IRA? Show your calculations using Microsoft Excel. 2. Now suppose that the Newtons will report AGI of less than $196,000 and put $12,000 each year into their Roth IRA for 20 years, earning an annual return of 5%. What future value will accumulate in their Roth at the end of this period?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The AGI of the Newtons, a married couple, is $199,000 this year. They would like to contribute to a Roth IRA.
1. What is the maximum amount this couple can contribute to a Roth IRA? Show your calculations using Microsoft Excel.
2. Now suppose that the Newtons will report AGI of less than $196,000 and put $12,000 each year into their Roth IRA for 20 years, earning an annual return of 5%. What future value will accumulate in their Roth at the end of this period?
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