You have just made your first $5,600 contribution to your individual retirement account. Assume you earn a 10.35 percent rate of return and make no additional contributions. Requirement 1: What will your account be worth when you retire in 35 years? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Amount Requirement 2: What if you wait 10 years before contributing? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Q: What are Eurodollars?

A: Eurodollars:It refers to the deposit of US dollars in the banks that are located outside the US (and…

Q: When do the funds earn interest at the MARR?

A: The MARR (Minimum Acceptable Rate of Return), generally referred to as hurdle rate is the lowest or…

Q: How to find present value annuity

A: Present value: It is the present value of the sum of money that a firm is going to receive at some…

Q: 7. Identify some economic factors that influence interest rates and explain the effects of each.

A: The interest rate can be defined as the rate used by borrower and lender in order to borrow or lend…

Q: What is interest coverage ratio?

A: The interest coverage ratio is the ratio which shows the ability of the company to pay the interest…

Q: How compound interest related to time value of money?

A: Compound Interest is the interest calculated on the principal that also includes the interest amount…

Q: time-value of money

A: Time value of money is a concept based on the premise that the money available now is worth more…

Q: am. 102.

A: APR stands for a) Annual Percentage Rate.

Q: write three benefits of the knowledge of the time value of money?

A: Time value of money refers to the worth of a money received today is different from a worth of a…

Q: None

A: BOP (Balance of Payment) - The balance of payments (BOP) is the method countries use to monitor all…

Q: What is realized real interest rates? Give example.

A: realized real interest rate  = nominal interest rate - actual inflation rate realized real interest…

Q: Why is the net income .90

A: Lets understand the basics. Cashflow statement are divided into three type of activities which are,…

Q: What does the annuity factor indicate?

A: Annuity factor It indicates the discounted factor’s sum for all the n maturities when all n…

Q: C5Q3.Which among the following is not a capital asset? Building Vehicle Cash Land

A: Capital assets tend to be used for more than 12 months of period of time.  Building can be used for…

Q: clearly distinguish between norminal interest rate and effective interest rate

A: The term interest rate can be defined as the fixed income received on the investment. . There are…

Q: What is the relation between the present value of an investment and time and interest rate?

A: The concept of present value of an investment and time and interest rate is an important concept of…

Q: Define the term the annuity factor?

A: An annuity factor is financial value that, when multiplied by a periodic amount, then it shows the…

Q: What is a mathematical term that is on display when using the fractional reserve?

A: Fractional reserve banking is defined as the system, where the fraction of the bank deposits that…

Q: Retirement programs, unemployment benefits, financial aid and other expenses that involve transfers…

A: Transfer of money refers to the movement of money from one individual or entity to another, without…

Q: What is a functional currency? What is the Intercst Coverage (Times Intcrest Earned) Ratio?

A:

Q: Define the capital maintenance term. Explain the types of capital maintenance. Write an example on…

A: Following is the answer to the given question

Q: 1. How are interest rates determined? Discuss and explain the interest rate equation and its…

A: Interest rate can be defined as the price that lenders charge for lending their money to borrowers.…

Q: What is time value of money

A: Time value of money is the concept that the value of a dollar to be received in future is less than…

Q: What are the Classifications of Annuity.

A: An Annuity is a periodic payment which are made from time to time from a lump sum corpus.

Q: what give rises to the changes in the balance of planned assets? A- cash contributions B- cash paid…

A: Plan assets are long term investment fund  held for employee benefits. And only purpose of paying…

Q: The common characteristic possessed by all assets is Oa. Great monetary value Ob. Tangible nature…

A: Assets are resources or items that have value and can be owned, controlled, or utilized to generate…

Q: How did you calculate the all items excluding interest?

A: Cash budget represents the outflow and inflow of cash and takes into consideration the beginning…

Employer Pension Plan

An employer pension plan is a retirement benefit provided by an employer to employees before or after they retire. Over the course of the employees' working lives, the employer should invest a lump sum or make monthly contributions to investment schemes in employees' names. It is the employer's legal responsibility to provide employees with retirement plans that support them with guaranteed financial security in retirement.