Future value of retirement accounts. 20k to start, 5k additional each year for 35 years. (age 30-65).

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Account 1: fee of .0117; return rate of .0442 annually.
Account 2: fee of .0004; return rate of .0834 annually.

FV_n = [C(1 – TC) * (1+r)ⁿ] + PMT(1-TC)[(1+r)n – 1/r]

FV₃₅ = [20,000(1-.0117) * (1+.0442)³⁵ + 5000(1-.0117) [(1+.0442)³⁵ – 1 / .0442) =

FV₃₅ = [20,000(1-.0004) * (1+.00834)³⁵ + 5000(1-.0004) [(1+.0834)³⁵ – 1 / .0834) =

Related Book For answer-question

Income Tax Fundamentals 2013

ISBN: 9781285586618

31st Edition

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

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Posted Date: Feb 04, 2024 01:29 AM

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Future value of retirement accounts. 20k to start, 5k additional each year for 35 years. (age 30-65).

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Here are the calculations Account 1 FV1 20000101171044235 ... View the full answer

Income Tax Fundamentals 2013

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