Question

In: Finance

Cam deposited $50,000 into an IRA 30 years ago, what is thevalue of his account...

Cam deposited $50,000 into an IRA 30 years ago, what is the value of his account today if he earned 8% compounded semiannually?

Solutions

Expert Solution

Cam deposited into IRA account 30 years ago amonting = $50,000

Calculating the Future Value today after 30 years of deposit:-

Where, Invested amount = $50,000

r = Interest rate = 8%

n= no of Years = 30

m = no of times compounding in a year = 2 (compounded semiannually)

Future value = $525,981.37

So, the value of his account today is $525,981.37


Related Solutions

a)When your father was born 47 years ago, his grandparents deposited $175 in an account for...
a)When your father was born 47 years ago, his grandparents deposited $175 in an account for him. Today, that account is worth $1,900. What was the annual rate of return on this account? 5.21 percent 5.00 percent 4.86 percent 3.89 percent 5.73 percent 1)Todd can afford to pay $390 per month for the next 7 years in order to purchase a new car. The interest rate is 6.8 percent compounded monthly. What is the most he can afford to pay...
Ten years ago, you deposited $2,500 into an account. Five years ago, you added an additional...
Ten years ago, you deposited $2,500 into an account. Five years ago, you added an additional $2,500 to his account. You earned 8 percent for the first 5 years and 12 percent for the last 5 years, both compounded annually. How much money do you have in your account today?
Twenty years ago, you deposited $1,000 into an account. Fifteen years ago, you added an additional...
Twenty years ago, you deposited $1,000 into an account. Fifteen years ago, you added an additional $3,000 to your account. You earned 6 percent, compounded annually, for the first 5 years and 10 percent, compounded annually, for the last 15 years. How much money do you have in your account
Eleven years ago, you deposited $3,200 into an account. Seven years ago, you added an additional...
Eleven years ago, you deposited $3,200 into an account. Seven years ago, you added an additional $1,000 to this account. You earned 9.2 percent, compounded annually, for the first 4 years and 5.5 percent, compounded annually, for the last 7 years. How much money do you have in your account today? $8,666.67 $7,717.29 $7,411.90 $8,708.15 $8,073.91
A. Two years ago, you opened an investment account and deposited $6,000. One year ago, you...
A. Two years ago, you opened an investment account and deposited $6,000. One year ago, you added another $2,100 to the account. Today, you are making a final deposit of $8,000. How much will you have in this account 3 years from today if you earn a 14.10 percent rate of return? B. How much more current value does a perpetuity of $250 a year have as compared to an annuity of $250 a year for 50 years given an...
Your grandparents deposited $12,000 into an account for you 17 years ago for college expenses. The...
Your grandparents deposited $12,000 into an account for you 17 years ago for college expenses. The account balance grew to $24,000. What rate of return (in percentage) was their deposit earning, annually?
Two years ago you deposited $705 into an new investment account that earns interest every month....
Two years ago you deposited $705 into an new investment account that earns interest every month. What is the interest rate needed, expressed as an APR (compounded monthly), if the account will have twice as much money three years from today (i.e., the balance will have doubled from your initial deposit). Enter your answer in decimal format, rounded and expressed to the nearest 4 decimal places (e.g., 0.12345 should be entered as 0.1235 and not anything else).
John established his first Roth IRA six years ago and has made a total participant contribution...
John established his first Roth IRA six years ago and has made a total participant contribution of $8,000 so far. Two years ago, he also converted his Traditional IRA assets ($6,000) to his Roth IRA (tax deduction was allowed when he contributed to his Traditional IRA and he has paid tax at the time of conversion). John is now 55 years old. (a). If John withdraws all the money (including contributions, conversions and earnings) from his account to pay for...
What is the future value of $100 deposited in an account for four years paying a...
What is the future value of $100 deposited in an account for four years paying a 6 percent annual rate of interest, compounded semiannually? What is the future value of an ordinary annuity of $2,000 each year for 10 years, invested at 12 percent? Gina has planned to start her college education four years from now. To pay for her college education, she has decided to save $1,000 a quarter for the next four years in an investment account expected...
What is the future value of $100 deposited in an account for four years paying a...
What is the future value of $100 deposited in an account for four years paying a 6 percent annual rate of interest, compounded semiannually? What is the future value of an ordinary annuity of $2,000 each year for 10 years, invested at 12 percent? Gina has planned to start her college education four years from now. To pay for her college education, she has decided to save $1,000 a quarter for the next four years in an investment account expected...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT