Question: i have completed until D. i need help with D. est on the vide for the $1000 2000 per year in an IRA interest rate

est on the vide for the $1000 2000 per year in an IRA interest rate was 7% end of 10 years, ts but left the total of punded annually for investment (still 8%) provide for annual payment? 38. (a) Stephanie invested $2000 per ve each year for 10 years. The interest compounded annually. At the end of 10 she ceased the IRA payments but left her investments at 7% compounded an the next 25 years. (i) What was the value of her IRA invest ments at the end of 10 years? (ii) What was the value of her investment at ! the end of the next 25 years? (b) Stephanie's friend, Roy, started his IRA invest- ments the tenth year and invested $2000 each year for the next 25 years at 7% compounded annually. What was the value of his investment at the end of the 25 years? (C) Which of the investments had the greater va at the end of the 35 years? (d) How much should Roy invest each year order for the value of his investment a end of the next 25 years to equal that of Stephanie's? (e) What does this exercise suggest to you as the best time to save for retirement or for some amount needed some time in the future
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
