Question: You have just made your first $ 5 , 0 0 0 contribution to your individual retirement account. Assume you earn an annual return 1

You have just made your first $5,000 contribution to your individual retirement account. Assume you earn an annual return 10.8 percent and make no additional contributions.
What will your account be worth when you retire in 44 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g.,32.16.)
Account value $
What if you wait 10 years before contributing? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g.,32.16.)
Account value $ At 5 percent interest, how long does it take to double your money?
Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g.,32.16.
At 5 percent interest, how long does it take to quadruple your money?
Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g.,32.16.

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!