Question

Laura Hall is a sales executive at a Baltimore firm. She is 25 years old and...

Laura Hall is a sales executive at a Baltimore firm. She is 25 years old and plans to invest $4,700 each year in an IRA account until she is 65 at which time she will retire (a total of 40 payments). If Laura invests at the beginning of each year, and the IRA investment will earn 11.05 percent annually, how much will she have when she retires? Assume that she makes the first payment today. (Round factor values to 4 decimal places, e.g. 1.5212 and final answer to 2 decimal places, e.g. 15.25.)

Please explain answer in detail. Thank you.

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

LAST TIME, I DID SIMILAR SUM, IN WHICH IT WAS MENTIONED TO ROUND FACTOR VALUES TO 4 DECIMALS BUT THEN ANSWER WAS NOT COMING

INSTEAD ANSWER WAS COMING WITHOUT ROUNDING FACTOR VALUES, SO I REQUEST PLEASE CHECK ACCORDINGLY. I HAVE GIVEN BOTH THE WAYS. THANK YOU

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
Margaret Moore is a sales executive at a Baltimore firm. She is 25 years old and...
Margaret Moore is a sales executive at a Baltimore firm. She is 25 years old and plans to invest $4,100 each year in an IRA account until she is 65 at which time she will retire (a total of 40 payments). If Margaret invests at the beginning of each year, and the IRA investment will earn 8.00 percent annually, how much will she have when she retires? Assume that she makes the first payment today
Kimberly Young is a sales executive at a Baltimore firm. She is 25 years old and...
Kimberly Young is a sales executive at a Baltimore firm. She is 25 years old and plans to invest $4,200 every year in an IRA account, beginning at the end of this year until she reaches the age of 65. If the IRA investment will earn 10.00 percent annually, how much will she have in 40 years, when she turns 65? (Round factor values to 4 decimal places, e.g. 1.5212 and final answer to 2 decimal places, e.g. 15.25.)
Patricia Johnson is a sales executive at a Baltimore firm. She is 25 years old and...
Patricia Johnson is a sales executive at a Baltimore firm. She is 25 years old and plans to invest $4,200 every year in an IRA account, beginning at the end of this year until she reaches the age of 65. If the IRA investment will earn 10.25 percent annually, how much will she have in 40 years, when she turns 65?
James Smith is 30 years and wants to retire when he is 65. So far he...
James Smith is 30 years and wants to retire when he is 65. So far he has saved (1) $5,000 in an IRA account in which his money is earning 8.3 percent annually and (2) $4,000 in a money market account in which he is earning 5.25 percent annually. James wants to have $1 million when he retires. Starting next year, he plans to invest the same amount of money every year until he retires in a mutual fund in...
Two friends, Alysha and Laura, are planning for their retirement. Both are 20 years old and...
Two friends, Alysha and Laura, are planning for their retirement. Both are 20 years old and plan on retiring in 40 years with $1,000,000 each. Laura plans on making annual deposits beginning in one year (total of 40 deposits) while Alysha plans on waiting and then depositing twice as much as Laura deposits. If both can earn 7.4 percent per year, how long can Alysha wait before she has to start making her deposits? (Round answer to 2 decimal places,...
Brian Lee is 30 years and wants to retire when he is 65. So far he...
Brian Lee is 30 years and wants to retire when he is 65. So far he has saved (1) $5,850 in an IRA account in which his money is earning 8.3 percent annually and (2) $4,320 in a money market account in which he is earning 5.25 percent annually. Brian wants to have $1 million when he retires. Starting next year, he plans to invest the same amount of money every year until he retires in a mutual fund in...
Sofia just graduated from college and she is starting her new job today. Her new employer...
Sofia just graduated from college and she is starting her new job today. Her new employer gave her a $15,000 signing bonus that she will invest today. She plans to retire 50 years from today (i.e., at the end of year 50). Once she retires, she would like to be able to withdraw from her retirement account $180,000 at the end of each year, starting the year after she retires (i.e., year 51). She expects that her retirement will last...
Sofia just graduated from college and she is starting her new job today. Her new employer...
Sofia just graduated from college and she is starting her new job today. Her new employer gave her a $15,000 signing bonus that she will invest today. She plans to retire 50 years from today (i.e., at the end of year 50). Once she retires, she would like to be able to withdraw from her retirement account $180,000 at the end of each year, starting the year after she retires (i.e., year 51). She expects that her retirement will last...
Your client is 21 years old. She wants to begin saving for retirement, with the first...
Your client is 21 years old. She wants to begin saving for retirement, with the first payment to come one year from now. She can save $8,000 per year, and you advise her to invest it in the stock market, which you expect to provide an average return of 11% in the future. a. If she follows your advice, how much money will she have at 65? Round your answer to the nearest cent. $   b. How much will she...
Your client is 23 years old. She wants to begin saving for retirement, with the first...
Your client is 23 years old. She wants to begin saving for retirement, with the first payment to come one year from now. She can save $15,000 per year, and you advise her to invest it in the stock market, which you expect to provide an average return of 8% in the future. A. If she follows your advice, how much money will she have at 65? Round your answer to the nearest cent. B. How much will she have...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT