Question

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.)

Answer #1

**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**

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Case narrative:
A young couple, both 25 years old, are planning to retire in 40
years at the age of 65. After they retire, they expect to live for
an additional 20 years, until age 85. They plan to begin saving for
retirement today and based on information from their financial
planner, they think they will earn 8% on their investment
compounded annually. They think they will earn 5% on their
retirement savings after they retire.
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