You annually invest $1,000 in an individual retirement account (IRA) starting at the age of 30 and make the contributions for 10 years. Your twin sister does the same starting at age 45 and makes the contributions for 20 years. Both of you earn 7 percent annually on your investment. What amounts will you and your sister have at age 657 Use Appendix A and Appendix C to answer the question. Round your answers to the nearest dollar. Amount on your account: $ Amount on your sister's account: $ Who has the larger amount at age 657 You have the larger amount.
You annually invest $1,000 in an individual retirement account (IRA) starting at the age of 30 and make the contributions for 10 years. Your twin sister does the same starting at age 45 and makes the contributions for 20 years. Both of you earn 7 percent annually on your investment. What amounts will you and your sister have at age 657 Use Appendix A and Appendix C to answer the question. Round your answers to the nearest dollar. Amount on your account: $ Amount on your sister's account: $ Who has the larger amount at age 657 You have the larger amount.
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:Problem 7-04
You annually invest $1,000 in an individual retirement account (IRA) starting at the age of 30 and make the contributions for 10 years. Your twin sister
does the same starting at age 45 and makes the contributions for 20 years. Both of you earn 7 percent annually on your investment. What amounts will
you and your sister have at age 65? Use Appendix A and Appendix C to answer the question. Round your answers to the nearest dollar.
Amount on your account: $
Amount on your sister's account: $
Who has the larger amount at age 657
You have
the larger amount.
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