Question: Bruce and Sharon are at the same age. They both had pension plans with their places of employment. Sharon started contributing $2500 at the end

Bruce and Sharon are at the same age. They both had pension plans with their places of employment. Sharon started contributing $2500 at the end of each year at the age 25. Bruce did not start making regular contributions until age 40, but at that point he contributed $6500 per year. Sharon's plan earned and annual rate of 4.55% compounded quarterly whereas Bruce's plan earned an annual rate of 4.85% compounded semi-annually.

a) What were the values of each plan when Bruce and Sharon are both 65 years old?

b) How much did Bruce and Sharon contribute to their respective plans?

c)How much interest did each of the earn?

d) Compare their rates of return.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Richard Ellis, the director of cost operations of Ontario Micro Devices, wishes to develop an accurate cost function to explain and predict support costs in the companys printed circuit board...

this is a calculator question, please help! Unit 1 Review Assignment Foundations 12 11. Bruce and Sharon are the same age and both had pension plans with their place of employment. Sharon started...

Could you plz solve this with formula because i did not know which formula i need to use. Please explain every detail. Thank you Unit 1 Self-assessment 11. Bruce and Sharon are the same age and both...

Bruce and Sharon are the same age and both had pension plans with their place of employment. Sharon started contributing $2500 per year at age 25. Bruce did not start making regular contributions...

Areas Key issues to analyze in the Financial Plan Priority Analysis to be completed to Responsible Team analyze /resolve issue Member Financial Outstanding Liabilities Analyze Net Worth and Aryan...

Clear Data Payer's name - Nom du payeur I+I Canada Revenue Agence du revenu Agency du Canada T4A UNIVERSAL CONSTRUCTION Year 2019 Statement of Pension, Retirement, Annuity, Annee and Other Income...

Hello, I needed the solution to these question from a Canadian Taxation Course. INDIVIDUALS: TAX BRACKETS Taxable income Up to $48,535 In excess of $48,535 In excess of $97,069 In excess of $150,473...

This is a comprehensive payroll problem that must be completed in the Excel worksheet provided. I have attached the excel template and the IRS Publication 15 Document that is needed to complete the...

Publication 15 In this step, you will use the Wage Bracket Method to calculate withholding. In this method, you do not need to calculate withholding allowances, but there are fairly-low limits as to...

Publication 15 Withholding for Federal Income Tax can be calculated using one of two methods. The first, covered in this section of the exercise, is the Percentage Method. Everett Kelly is married...

PLEASE ANSWER 6-10 and QUESTION 12 . READ ALL PHOTOS POSTED AND TYPE ANSWER TO THE QUESTION PLEASE . NEED HELP ASAP PERSONAL INFORMATION Antonne and LaKeisha met when they were both students at Clark...

Does support for suicide (death with dignity) vary by social class? Is this relationship different in different nations? Small samples in three nations were asked if it is ever justified for a person...

How has technology impacted the fixed price trend?

If you want to hedge and owe a firm a foreign currency in the future, you would Question 2 Answer a . buy the foreign currency forward. b . sell the foreign currency forward. c . speculate on the...

Foster Company's December 31, Year 1, balance sheet showed $2.700 cash, $1O00 common stock, and $1700 retained earmings The company experienced the foilowing event during Year 2 On October 1...

Given that the vacancy concentration of pure metals is described by the Arrhenius relationship, exp(-Evacancy/KgT), and the vacancy formation energy for FCC Cu is Evacancy 0.9 eV/atom, what...

In February 2012, a bill was introduced into the Ohio State Senate that would outlaw smoking in vehicles if young children are present. That same month a poll was conducted by Quinnipiac University...

44. Which of the following factors influences demand? I. consumer income II. prices of complement goods III. prices of substitute goods IV. the number of consumers O Il and II I and IV O I, II, III,...

The Term Paper Assignment The term paper will consist of three distinct parts. Students must submit the first two parts as homework assignments in weeks five and nine. The third and final section...

4. I try to make them feel what I really mean (1 is related to the visionary, 2 to the logical, 3 to action and 4 to the emotional).

4. What is the goal of the others in the network?

2. What we can learn from the past