You annually invest $1,500 in an individual retirement account (IRA) starting at the age of 20 and make the contributions for 15 years. Your twin sister does the samestarting at age 30 and makes the contributions for 30 years. Both of you earn 6 percent annually on your investment. What amounts will you and your sister have at age60? 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 60?the larger amount.-Select-

Time value of money is a financial concept which is used to calculate the value of money in present…

Answered: You annually Invest $1,500 in an…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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You annually invest $2,000 in an individual retirement account (IRA) starting at the age of 30 and make the contributions for 15 years. Your twin sister does the same starting at age 35 and makes the contributions for 25 years. Both of you earn 7 percent annually on your investment. What amounts will you and your sister have at age 60? 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 60?-Select-You haveYour sister hasItem 3 the larger amount.
How much must you deposit each year into your retirement account starting now and continuing through year 10 if you want to be able to withdraw $90,000 per year forever, beginning 29 years from now? Assume the account earns interest at 14% per year. The amount to be deposited is determined to be $________ .
You want to retire at age 65. You decide to make a deposit to yourself at the end of each year into an account paying 3%, compounded annually. Assuming you are now 25 and can spare $1,400 per year, how much will you have when you retire at age 65? (Round your answer to the nearest cent.)_____$
PLEASE, PERFORM THE EXERCISE IN EXCEL AND SHOW THE FORMULAS2.Alejandra Marrufo wants to know how much she should deposit today, so that in 10 years she will have the amount (VF) of 77,150.00, which she needs to make a pension payment for her domestic worker, a) if the account pays 8.125% interest compoundable semiannually; b) if the account pays 9.65% compoundable monthl
When your son is born you want to determine what lump amount would you have to be paid into an account bearing interest of 10%/yr to provide withdrawals of $10,000 on each of your son's 18th, 19th, 20th, and 21st birthday
Hi can someone help me with this question?
A couple is saving for retirement with three different accounts. The table below shows the current balances in their accounts, along with their yearly contribution, and the yearly return on each account. The couple will retire in 22.00 years and pool the money into a savings account that pays 4.00% APR. They plan on living for 27.00 more years and making their yearly withdrawals at the beginning of the year. What will be their yearly withdrawal? Yearly Contribution Account Fidelity Mutual Fund Vanguard Mutual Fund Employer 401k Balance $24,316.00 $184,560.00 $304,945.00 $1,000.00 $10,000.00 $15,000.00 APR 6.00% 8.00% 6.00%
Sara deposits $500 per month into an annuity. The annuity earns 5%.interest.compounded monthly. If she does this for 30 years, how much is in the annuity? Round to nearest whole dollar. S Enter a number, Submit Answer
You are the beneficiary of a life insurance policy. The insurance company informs you that you have two options for receiving the insurance proceeds. You can receive a lump sum of $400,000 today or receive payments of $16,000 a year for 15 years. You can earn 6 percent on your money. Which option should you take and why?
Alec, Daniel, William, and Stephen decide today to save for retirement. Each person wants to retire by age 68 and puts $9,300 into an account earning 8% compounded annually. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Round your answers to 2 decimal places.) Required:Calculate how much each person will have accumulated by the age of 68. Person Age Initial Investment Accumulated Investment by Retirement (age 68) Alec 58 $9,300 Daniel 48 9,300 William 38 9,300 Stephen 28 9,300
Logan starts an IRA (Individual Retirement Account) at the age of 30 to save for retirement. He deposits $⁢400 each month. Upon retirement at the age of 65, his retirement savings is $⁢943,445.01. Determine the amount of money Logan deposited over the length of the investment. Round to the nearest thousand dollars.
In 2012 the maximum Social Security deposit by an individual was $8,386.75. Suppose you are 27 and make a deposit of this amount into an account at the end of each year. How much would you have (to the nearest dollar) when you retire if the account pays 2% compounded annually and you retire at age 65?_____$

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