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Goryan [66]
3 years ago
7

You have just made your first $5,000 contribution to your individual retirement account. Assume you earn an annual return of 10.

65 percent and make no additional contributions.
Required:
a. What will your account be worth when you retire in 42 years?
b. What if you wait 10 years before contributing?
Business
1 answer:
Airida [17]3 years ago
3 0

Answer:

Results are below.

Explanation:

Giving the following information:

Initial investment= $5,000

i= 10.65%

To determine future value, we need to use the following formula:

FV= PV(1+i)^n

<u>For 42 years:</u>

FV= 5,000*(1.1065^42)

FV= $350,695

<u>Now, for 32 years:</u>

FV= 5,000*(1.1065^32)

FV= $127,472.17

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William (71), a retired single taxpayer, received a monthly pension of $2,500 ($30,000 annually). He did not contribute any afte
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Based on the information given, it should be noted that the amount of William's pension distribution that is taxable is $30000.

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