Retirement planning Personal Finance Problem Hal Thomas, a 35-year-old college graduate, wishes to retire at age...

 
 

Transcribed Image Text:

Retirement planning Personal Finance Problem Hal Thomas, a 35-year-old college graduate, wishes to retire at age 65. To supplement other sources of retirement income, he can deposit $2,000 each year into a tax-deferred individual retirement arrangement (IRA). The IRA will earn a return of 15% over the next 30 years. a. If Hal makes end-of-year $2,000 deposits into the IRA, how much will he have accumulated in 30 years when he turns 65? b. If Hal decides to wait until age 45 to begin making end-of-year $2,000 deposits into the IRA, how much will he have accumulated when he retires 20 years later? c. Using your findings in parts a and b, discuss the impact of delaying deposits into the IRA for 10 years (age 35 to age 45) on the amount accumulated by the end of Hal's 65th year. Retirement planning Personal Finance Problem Hal Thomas, a 35-year-old college graduate, wishes to retire at age 65. To supplement other sources of retirement income, he can deposit $2,000 each year into a tax-deferred individual retirement arrangement (IRA). The IRA will earn a return of 15% over the next 30 years. a. If Hal makes end-of-year $2,000 deposits into the IRA, how much will he have accumulated in 30 years when he turns 65? b. If Hal decides to wait until age 45 to begin making end-of-year $2,000 deposits into the IRA, how much will he have accumulated when he retires 20 years later? c. Using your findings in parts a and b, discuss the impact of delaying deposits into the IRA for 10 years (age 35 to age 45) on the amount accumulated by the end of Hal's 65th year.

Answer rating: 100% (QA)

Answer Heres the solution for Hai Thomas retirement planning Interest Rate r 15 per year Annual Depo... View the full answer