I will invest $500 per quarter for my retirement at 7.3% compounding quarterly for 32 years....
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•I will invest $500 per quarter for my retirement at 7.3% compounding quarterly for 32 years. I have a choice of making that payment of $500 at the beginning or the end of the quarter (regular annuity or annuity due). In which account will I have more money and by how much? Which account will earn the most interest and by how much? •Betty deposits $2000 annually into a Roth IRA that earns 6.85% compounded annually. Due to a change in employment, these deposits stop after 10 years, but the account continues to earn interest until Betty retires 25 years after the last deposit is made. How much is in the account when Betty retires? ($143,785.10) •Al Bundy says he paid $25,000 down on a new house and will pay $525 per month for 30 years. If interest is 7.8% compounded monthly, what was the selling price of the house? •I will invest $500 per quarter for my retirement at 7.3% compounding quarterly for 32 years. I have a choice of making that payment of $500 at the beginning or the end of the quarter (regular annuity or annuity due). In which account will I have more money and by how much? Which account will earn the most interest and by how much? •Betty deposits $2000 annually into a Roth IRA that earns 6.85% compounded annually. Due to a change in employment, these deposits stop after 10 years, but the account continues to earn interest until Betty retires 25 years after the last deposit is made. How much is in the account when Betty retires? ($143,785.10) •Al Bundy says he paid $25,000 down on a new house and will pay $525 per month for 30 years. If interest is 7.8% compounded monthly, what was the selling price of the house?
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Answer rating: 100% (QA)
Retirement Investment 1 Regular Annuity End of the Quarter Future Value Formula FV P frac1 rnt 1r ight P 500 r 00734 quarterly compounding n 324 32 ye... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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