Need help with answering this question, seems I have A correct but b and c are not.\

Imagine you are 30 years old in 2017 and would like to retire in 2047 (when you are 60 years old).On December 31^st, 2017, you invest $10,000 in an IRA (Individual Retirement Account), which is an investment account where you can save for retirement.With the $10,000, you buy 2 mutual funds.$5000 is invested in a stock mutual fund that is expected to return 7% per year, and $5000 in a Bond mutual fund that is expected to return 4% per year.Every year on December 31^st, you continue to add $5000 to the IRA, of which $4000 goes into the stock mutual fund and $1000 goes into the bond mutual fund.

Please use the tables in the Time value of Money Appendix from the textbook for your calculations.Show your calculations clearly.Do not use Excel or websites such as Moneychimp.com.If you are not sure about the approach to use, make a posting to the Course topics board or send me an email and I can steer you in the right direction.

1. Assuming you get the returns, anticipated, what will be the balance in the stock mutual fund on December 31^st, 2047 (in 30 years)? (5 pts)

5000 at 7% with additional 4000 added per year.

5000(1+.07)^30 = 38,061

4000x94.461=377,844

Total stock funds = 415,905

1. Assuming you get the returns, anticipated, what will be the balance in the bond mutual fund on December 31^st, 2047 (in 30 years)? (5 pts)

5000 at 4% with additional 1000 added per year.

5000(1+.04)^30 = 16,216

1000x94.461=94,461

Total bond funds = 110,677

1. Given the above, what is the total balance in your account? Your goal is to accumulate $2 Million in this account by the time you retire.How much MORE will you need to contribute to the account (assume that the entire extra contribution will go into the stock mutual fund) each year to achieve this goal? (5 pts)

Total Balance=526,582

Amount to be contributed= 2,000,000-526,582= 1,473,418