Question

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.)

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

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

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
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?
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...
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
A young couple, both 25 years old, are planning to retire in 40 years at the...
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. 1. If they begin at age...
Case narrative: A young couple, both 25 years old, are planning to retire in 40 years...
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. Question #1 answer: $1,295,283...
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...
A 20 year old wants to retire as a millionaire by the time she turns 70....
A 20 year old wants to retire as a millionaire by the time she turns 70. (With life spans increasing, and the social security fund being depleted by baby boomers, the retirement age will have invariably risen by the time she reaches 65 years of age, probably to something even higher than 70, actually.) How much will she have to save at the beginning of each month if she can earn 5% compounded annually and have $1,000,000 by the time...
Yumi's grandparents presented her with a gift of $17,000 when she was 10 years old to...
Yumi's grandparents presented her with a gift of $17,000 when she was 10 years old to be used for her college education. Over the next 7 years, until she turned 17, Yumi's parents had invested her money in a tax-free account that had yielded interest at the rate of 2.5%/year compounded monthly. Upon turning 17, Yumi now plans to withdraw her funds in equal annual installments over the next 4 years, starting at age 18. If the college fund is...
Yumi's grandparents presented her with a gift of $22,000 when she was 9 years old to...
Yumi's grandparents presented her with a gift of $22,000 when she was 9 years old to be used for her college education. Over the next 8 years, until she turned 17, Yumi's parents had invested her money in a tax-free account that had yielded interest at the rate of 4.5%/year compounded monthly. Upon turning 17, Yumi now plans to withdraw her funds in equal annual installments over the next 4 years, starting at age 18. If the college fund is...
Stephanie Watson is 20 years old and plans to make the following investments beginning next year....
Stephanie Watson is 20 years old and plans to make the following investments beginning next year. She will invest $3,125 in each of the next three years and will then make investments of $3,650, $3,725, $3,875, and $4,000 over the following four years. If the investments are expected to earn 11.5 percent annually, how much will Stephanie have when she turns 30?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT