Suppose you put $3,000 per year into a Roth IRA. The account earns 6 percent interest per
Question:
Suppose you put $3,000 per year into a Roth IRA. The account earns 6 percent interest per year. How much will you have when you retire in 30 years? This question asks for the future value of an annuity of $3,000 per year for 30 years at 6 percent, which we can calculate as follows:
So, you’ll have close to a quarter million dollars in the account.
Transcribed Image Text:
FV = C [ (1¹ +4² - 1] = (1+r)t $3,000 X $3,000 x 79.0582 = = $237,174.56 1.06 30 .06
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (3 reviews)
To solve this problem using your formula we can plug in the following values PMT 3000 n30 i00...View the full answer
Answered By
Atuga Nichasius
I am a Highly skilled Online Tutor has a Bachelor’s Degree in Engineering as well as seven years of experience tutoring students in high school, bachelors and post graduate levels. I have a solid understanding of all learning styles as well as using asynchronous online platforms for tutoring needs. I individualise tutoring for students according to content tutoring needs assessments.
My strengths include good understanding of all teaching methods and learning styles and I am able to convey material to students in an easy to understand manner. I can also assists students with homework questions and test preparation strategies and I am able to help students in math, gre, business , and statistics
I consider myself to have excellent interpersonal and assessment skills with strong teaching presentation verbal and written communication
I love tutoring. I love doing it. I find it intrinsically satisfying to see the light come on in a student's eyes.
My first math lesson that I taught was when I was 5. My neighbor, still in diapers, kept skipping 4 when counting from 1 to 10. I worked with him until he could get all 10 numbers in a row, and match them up with his fingers.
My students drastically improve under my tutelage, generally seeing a two grade level improvement (F to C, C to A, for example), and all of them get a much clearer understanding!
I am committed to helping my students get the top grades no matter the cost. I will take extra hours with you, repeat myself a thousand times if I have to and guide you to the best of my ability until you understand the concept that I'm teaching you.
5.00+
2+ Reviews
10+ Question Solved
Related Book For
Corporate Finance
ISBN: 9781265533199
13th International Edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
Question Posted:
Students also viewed these Business questions
-
Bankrate.com reported on a shocking statistic: only 54% of workers participate in their company's retirement plan. This means that 46% do not. With such an uncertain future for Social Security, this...
-
This week, you are visiting a GSO grocery store in a rural town of Quebec to see if you could increase their customer satisfaction. During the three days you have been here, you have noticed that...
-
1. Identify the stage of the life cycle that best describes Cory and Tisha today. What important financial planning issues characterize this stage? 2. Based on the issues identified in Question 1 and...
-
A company has the following results for the three accounting periods to 31 March 2021: Assuming that all possible claims are made to relieve the trading loss against total profits, calculate the...
-
What does an operating profit margin reveal?
-
Refrigerant-134a at 140 kPa and -10°C is compressed by an adiabatic 0.5-kW compressor to an exit state of 700 kPa and 60°C. Neglecting the changes in kinetic and potential energies and...
-
How does an auditor test whether employees whose names appear on the payroll register are bona fide, i.e., actually employed by the company?
-
Carlise Corp., which manufactures ceiling fans, currently has two product lines, the Indoor and the Outdoor. Carlise has total overhead of $139,400. Carlise has identified the following information...
-
7. The figures show four congruent squares Sk in space. Rank the surface integrals Ik x Z Z = SS SP. xdS. Explain. Z X S3 S2 S4 S
-
Ann Chen receives an annuity of $450, payable once every two years. The annuity stretches out over 20 years. The first payment occurs at Year 2that is, two years from today. The annual discount rate...
-
Mark Young has won the state lottery, paying $50,000 a year for 20 years. He is to receive his first payment a year from now. The state advertises this as the Million Dollar Lottery because...
-
In Problems 6774, analyze each equation. x 2 = 16(y - 3)
-
Find the future value of an annuity due of $100 each quarter for 4 1/2 years at 12%, compounded quarterly. (Round your answer to the nearest cent.) How much must be deposited at the beginning of each...
-
Units Determine the cost assigned to ending inventory and to cost of goods sold using FIFO. Date Activities Units Acquired at Cost Total Sales Units sold at Retail Selling price per Cost Total cost...
-
Using the MSFT financial statements, calculate the variance for the balances listed below (some are clearly stated and some you might have to calculate). Cost of services Selling, general,...
-
The following data is provided for Garcon Company and Pepper Company for the year ended December 31. Garcon Company Pepper Company Finished goods inventory, beginning $ 12,200 $ 16,450 Work in...
-
Cauce Corporation is preparing its year-end balance sheet. The company records show the following selected amounts at the end of the year: Total assets Total noncurrent assets Liabilities: Notes...
-
List the four IMA standards of ethical practice and briefly describe each.
-
An access route is being constructed across a field (Figure Q8). Apart from a relatively firm strip of ground alongside the field's longer side AB, the ground is generally marshy. The route can...
-
Credit Period Length what are some of the factors that determine the length of the credit period? Why the length of the buyer iss operating cycle often considered an upper bound on the length of the...
-
Credit Period Length in each of the following pairings, indicate which firm would probably have a longer credit period and explain your reasoning. a. Firm A sells a miracle cure for baldness: Firm B...
-
Inventory Types what are the different inventory types? How do the types differ? Why are some types said to have dependent demand whereas other types are said to have independent demand?
-
Lupo Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on...
-
Discuss the differences between full virtualization and paravirtualization, and how each impacts system performance and compatibility with guest operating systems .
-
The most recent financial statements for Martin, Inc., are shown here: Income Statement Sales Costs Taxable income Taxes (21%) Net income $24,550 -14,730 $9,820 -2,062 $7,758 Assets Balance Sheet...
Study smarter with the SolutionInn App