9EM ### Future Value of Retirement ContributionsIn this exercise, we'll explore the future value of a retirement account given a specific contribution and interest rate. Let's assume an initial contribution of $4,400 with an annual return of 13 percent. No additional contributions will be made.#### Scenarios1. **Scenario A - Immediate Contribution**: - **Question**: What will your account be worth when you retire in 29 years if you make the contribution now? - **Instruction**: Do not round intermediate calculations and round your final answer to 2 decimal places (e.g., 32.16).2. **Scenario B - Delayed Contribution**: - **Question**: What will your account be worth if you wait 10 years before contributing? - **Instruction**: Do not round intermediate calculations and round your final answer to 2 decimal places (e.g., 32.16).To aid in your calculations, here is a table where you can enter the future values for each scenario:| Scenario | Future Value Calculation ||----------|---------------------------------------------------|| a. | Future value for starting now | | b. | Future value if waiting 10 years |By inputting the figures correctly into the formula for compound interest, you can determine the future value of your retirement account under both scenarios.### Key FormulaThe formula to calculate the future value (FV) is:\[ \text{FV} = PV \times (1 + r)^n \]where:- $ PV $ = Present Value (initial contribution, $4,400)- $ r $ = annual interest rate (13% or 0.13)- $ n $ = number of yearsUse this formula to solve for each scenario, ensuring intermediate calculations are accurate up to several decimal points before rounding the final result to 2 decimal places.Do your calculations and fill in the table with your results!

Given information: Contribution made : $4400 Rate of return : 13% We have to compute the future…

You have just made your first $4,400 contribution to your retirement account. Assume you earn a return of 13 percent per year and make no additional contributions. What will your account be worth when you retire in 29 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What if you wait 10 years before contributing? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

You have just made your first $4,400 contribution to your retirement account. Assume you earn a return of 13 percent per year and make no additional contributions. What will your account be worth when you retire in 29 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What if you wait 10 years before contributing? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

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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Fans Company has two service departments-product design and engineering support, and two production departments - assembly and finishing. The distribution of each service department's efforts to the other departments is shown below: Design SERVICE DEPARTMENT Product Design 0% Engineering Support 20% The direct operating costs of the departments (including both variable and fixed costs) were as follows: Product Design Engineering Support Assembly Finishing Multiple Choice $1,863,265 SERVICES PROVIDED TO Support 10% 0% $623,878 $1,036,122 Assembly 30% 45% $100,000 $ 200,000 $540,000 $ 820,000 The total cost accumulated in the assembly department using the reciprocal method is (calculate all ratios and percentages to 4 decimal places, for example 33.3333%, and round all dollar amounts to the nearest whole dollar) Finishing 60% 35% D
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