Twins Jessica and Joshua, both 25, graduated from college and began working in the family restaurant business. The first year, Jessica began putting $ 2,000 per year in an individual retirement account and contributed to it for a total of 10 years. After 10 years she made no further contributions until she retired at age 65. Joshua did not start making contributions to his individual retirement account until he was 35, but he continued making contributions of $ 2,000 each year until he retired at age 65. Assuming that both Jessica and Joshua receive 10% interest per year, how much will Jessica have at retirement? How much did she contribute in total? How much will Joshua have at retirement? How much did he contribute in total?
Answer to relevant QuestionsHelp the Sampsons determine how much they will have for their children’s education by calculating how much $ 3,600 in annual savings will accumulate if they earn interest of (a) 5% and (b) 7%. Next, determine how much $ ...What are itemized deductions? How do itemized deductions relate to standard deductions? Provide some examples of itemized deductions. What is the purpose of income tax? Who administers the federal tax system? How much will be withheld from her weekly check for Social Security tax? Medicare tax? Total FICA taxes? Emma’s adjusted gross income is $ 24,200. She has $ 1,800 in unreimbursed medical expenses. How much in medical expenses can Emma claim as an itemized deduction?
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