Question

future value of annuity twins Jessica Joshua both 25 graduated from college and begin working thousand...

future value of annuity twins Jessica Joshua both 25 graduated from college and begin working thousand per year in an individual retirement account and contributed it for a total of five years after five years she made no further contributions until she retired at age 65 Josh didn't start making his contributions to his individual retirement account until he was 35 but he continued making contributions of 2000 each year until he retired at 65 assuming that both Jessica and Joshua received 11% interest per year how much will Jessica have at retirement how much did she contribute in total how much will Joshua have a retirement how much did he contribute in total
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Jessica contributed for a total of five years, The future value of Jessica's contribution is found using future value of annuity equation

The amount that Jessica will have at retirement is found using future value of investment equation

Contribution made by Jessica = $ 5000

The value of Joshua's account at the time of retirement is found using future value of annuity equation.

Contribution made by Joshua = $ 2000 30 = $ 60000

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1. Isabella (25 yr. old) and Chris (35 yr. old) graduated from Tulane University and began...
1. Isabella (25 yr. old) and Chris (35 yr. old) graduated from Tulane University and began working in the family business. The first year, Isabella began putting $3,000 per year in a registered retirement saving plan (RRSP) and contributed to it for a total of 10 years. After that time, she made no contributions until she retired at age 65. Chris did not start making contributions to his RRSP until he was 55, but he continued making contributions of $3,000...
An Individual Retirement Account (IRA) is an annuity that is set up to save for retirement....
An Individual Retirement Account (IRA) is an annuity that is set up to save for retirement. IRAs differ from TDAs in that an IRA allows the participant to contribute money whenever he or she wants, whereas a TDA requires the participant to have a specific amount deducted from each of his or her paychecks. When Bo McSwine was 16, he got an after-school job at his parents' barbecue restaurant. His parents told him that if he put some of his...
Mary turned 20 today.  She has decided to begin an annuity account to prepare for her future.  She...
Mary turned 20 today.  She has decided to begin an annuity account to prepare for her future.  She can afford to put $50/month in the investment.  The account returns 7% annual interest.  She hopes she will be able to keep the account until she retires at 65.  If she retires on her birthday, how much money will she have from the annuity for her retirement? Ashley, Mary’s twin sister, thinks she is nuts.  She has 45 years to worry about that.  Then, when Ashley turned 45, she...
An Individual Retirement Account (IRA) is an annuity that is set up to save for retirement....
An Individual Retirement Account (IRA) is an annuity that is set up to save for retirement. IRAs differ from TDAs in that an IRA allows the participant to contribute money whenever he or she wants, whereas a TDA requires the participant to have a specific amount deducted from each of his or her paychecks. When Shannon Pegnim was 14, she got an after-school job at a local pet shop. Her parents told her that if she put some of her...
Future value of an​ annuity)  Upon graduating from college 30 years​ ago, Dr. Nick Riviera was...
Future value of an​ annuity)  Upon graduating from college 30 years​ ago, Dr. Nick Riviera was already planning for his retirement. Since​ then, he has made deposits into a retirement fund on a monthly basis in the amount of ​$100. Nick has just completed his final payment and is at last ready to retire. His retirement fund has earned 12 percent compounded monthly. Use five decimal places for the periodic interest rate in your calculations. a.  How much has Nick...
Future value of an​ annuity)  Upon graduating from college 30 years​ ago, Dr. Nick Riviera was...
Future value of an​ annuity)  Upon graduating from college 30 years​ ago, Dr. Nick Riviera was already planning for his retirement. Since​ then, he has made deposits into a retirement fund on a monthly basis in the amount of ​$100. Nick has just completed his final payment and is at last ready to retire. His retirement fund has earned 12 percent compounded monthly. Use five decimal places for the periodic interest rate in your calculations. a.  How much has Nick...
A newly-graduated engineer begins her job on her 24th birthday, and beings contributing to her retirement...
A newly-graduated engineer begins her job on her 24th birthday, and beings contributing to her retirement account the following month. Her company has agreed to match her contributions up to 4% of her salary, so she elects to contribute 4% to get the full company match (so the total contribution to the fund is 8%). Her starting monthly salary is $5000, and it’s expected to increase an average of 3% per year (or 0.25% per month). Her nominal annual MARR...
A newly-graduated engineer begins her job on her 24th birthday, and beings contributing to her retirement...
A newly-graduated engineer begins her job on her 24th birthday, and beings contributing to her retirement account the following month. Her company has agreed to match her contributions up to 4% of her salary, so she elects to contribute 4% to get the full company match (so the total contribution to the fund is 8%). Her starting monthly salary is $5000, and it’s expected to increase an average of 3% per year (or 0.25% per month). Her nominal annual MARR...
a) Find the future value of an ordinary annuity of $4,000 paid quarterly for 9 years,...
a) Find the future value of an ordinary annuity of $4,000 paid quarterly for 9 years, if the interest rate is 8%, compounded quarterly. (Round your answer to the nearest cent.) $ = b) Patty Stacey deposits $1600 at the end of each of 5 years in an IRA. If she leaves the money that has accumulated in the IRA account for 25 additional years, how much is in her account at the end of the 30-year period? Assume an...
Betty plans to begin saving one year from today. She will contribute $12,000 per year for...
Betty plans to begin saving one year from today. She will contribute $12,000 per year for 35 years and estimates that he can earn an annual rate of 6% on his savings. How much does she expect to have in 35 years? $1,325,217 $1,337,217 $1,424,710 $1,471,437 None of the above Tam needs $4,000,000 when you retire in 40 years and can earn 8% on all invested funds. She will start contributing to your retirement account in a month. How much...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT