The contribution into an IRA for a particular year can be made any time from January 1 of that year to April 15 of the following year. Suppose Enid and Lucy both set up traditional IRA accounts on January 1 of 2006 and each contributes $4,000 into her account for ten years at 5% interest compounded annually. Assume that Enid makes her contributions as soon as possible and Lucy makes her contributions one year later. Calculate the balances in the two accounts at the time Lucy makes her final contribution. Enid's balance is $ Lucy's balance is $
The contribution into an IRA for a particular year can be made any time from January 1 of that year to April 15 of the following year. Suppose Enid and Lucy both set up traditional IRA accounts on January 1 of 2006 and each contributes $4,000 into her account for ten years at 5% interest compounded annually. Assume that Enid makes her contributions as soon as possible and Lucy makes her contributions one year later. Calculate the balances in the two accounts at the time Lucy makes her final contribution. Enid's balance is $ Lucy's balance is $
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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The contribution into an IRA for a particular year can be made any time from January 1 of that year to April 15 of the following year. Suppose Enid and Lucy both set up traditional IRA accounts on January 1 of 2006 and each contributes $4,000 into her account for ten years at 5% interest compounded annually. Assume that Enid makes her contributions as soon as possible and Lucy makes her contributions one year later. Calculate the balances in the two accounts at the time Lucy makes her final contribution.
Enid's balance is $
Lucy's balance is $
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