IS this done correctly? If not please do it and explain it to me.

5. Bridgette wants to retire 32 years from now. She decides to start saving $500 each

month into a Roth IRA starting at the end of this month. If the IRA is expected to earn

an average return of 10% annually, how much will she have in the account at the end of

32 years? Round to two decimal places.

Instructions:

You are required to use a financial calculator or spreadsheet (Excel) to solve 10 problems

(provided on page 3) on the applications of the time value of money. You are required to show

the following 4 steps for each problem (sample questions and solutions are provided for

guidance):

(i) Develop the timeline (linear representation of the timing of cash flows)

(ii) Identify the time value of money variable (PV, FV, PMT, N or Rate) which needs to

be calculated in the question.

(iii) Identify the values of the remaining four variables (PV, FV, PMT, N or Rate) from

the question. Be sure to input positive or negative signs.

(iv) Calculate the correct value of the variable identified in step (ii).

Years	0	1	2	3	4	5	6	7	8	9	10	11	12
Cash Flow	0	6000	6000	6000	6000	6000	6000	6000	6000	6000	6000	6000	6000

Years	13	14	15	16	17	18	19	20	21	22
Cash Flow	6000	6000	6000	6000	6000	6000	6000	6000	6000	6000

Years	23	24	25	26	27	28	29	30	31	32
Cash Flow	6000	6000	6000	6000	6000	6000	6000	6000	6000	$1,392,562.97

ii. PV = 0, FV=?, PMT = $500, I = 10%/12=.83333%, N = 32*12=384 months

iii. The value to be determined is the FV.

iv. FV = $1,392,562.97