You have just made your first $1,500 contribution to your retirement account.Assume you earn a return of9 percent and make no additional contributions.a. What will your account be worth when you retire in 45 years?Future value for starting nowb. What will your account be worth if you wait 8 years before contributing?Future value if waiting 8 years

FV = PV(1 + r)t FV= Future Vale PV = Present Value r= rate of interest t = time in years

Answered: You have just made your first $1,500…

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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Suppose you want to have $800,000 for retirement in 25 years. Your account earns 9% interest.a) How much would you need to deposit in the account each month?$b) How much interest will you earn? $
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you have decided to begin saving for retirement. you will deposit $800 in a bank account today. than you will deposit an additional $800 every following year for 29 years (an annuity due). if your bank pays 3.73% interest, how much will you accumulate in the account at the end of 30 years

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