You annually invest $1,000 in an individual retirement account(IRA) starting at the age of 30...

You annually invest $1,000 in an individual retirement account (IRA) starting at the age of 30 and make the contributions for 15 years. Your twin sister does the same starting at age 45 and makes the contributions for 15 years. Both of you earn 6 percent annually on your investment.

What amounts will you and your sister have at age 60? Use Appendix A and Appendix C to answer the question. Round your answers to the nearest dollar.

Amount on your account: $

Amount on your sister's account: $

Who has the larger amount at age 60? -Select- the larger amount.

Expert Solution

Note -

Your total investment period will be 60-30= 30 years .but amount will be deposited for first 15 years starting from the age of 30.

Your twin sisters investment period will be 60-45 = 15 years and amount will be invested for 15 years starting from age of 45.

jeff jeffy answered 2 years ago

You annually invest $1,500 in an individual retirement account (IRA) starting at the age of 30...

You annually invest $1,500 in an individual retirement account (IRA) starting at the age of 30 and make the contributions for 15 years. Your twin sister does the same starting at age 45 and makes the contributions for 15 years. Both of you earn 7 percent annually on your investment. What amounts will you and your sister have at age 60? Use Appendix A and Appendix C to answer the question. Round your answers to the nearest dollar. Amount on...

You annually invest $2,000 in an individual retirement account (IRA) starting at the age of 25...

You annually invest $2,000 in an individual retirement account (IRA) starting at the age of 25 and make the contributions for 10 years. Your twin sister does the same starting at age 40 and makes the contributions for 25 years. Both of you earn 7 percent annually on your investment. What amounts will you and your sister have at age 65? Use Appendix A and Appendix C to answer the question. Round your answers to the nearest dollar. Amount on...

1. You annually invest $1,500 in an individual retirement account (IRA) starting at the age of...

1. You annually invest $1,500 in an individual retirement account (IRA) starting at the age of 20 and make the contributions for 15 years. Your twin sister does the same starting at age 35 and makes the contributions for 30 years. Both of you earn 7 percent annually on your investment. What amounts will you and your sister have at age 65? Round your answers to the nearest dollar. Amount on your account: $ Amount on your sister's account: $ ...

At age 25, Katharine starts to invest money into an Individual Retirement Account (IRA). If she...

At age 25, Katharine starts to invest money into an Individual Retirement Account (IRA). If she decides to save $4000 every year and invest the amount into the IRA account at the end of each year for 30 years, how much will the account balance when she is 55 years old? Assume the IRA account generate 7.75% interest rate per year, A) 46,114. B) 120,000. C) 375,614 D) 432,868. E) 462,114. Assume that you win a lottery and have the...

Mary, age 27, annually invests $1,000 in an IRA starting this year through the year of...

Mary, age 27, annually invests $1,000 in an IRA starting this year through the year of her 35th birthday, and then never makes another contribution. Sara, age 36, annually invests $1,000 in an IRA through the year of her 65th birthday. If both Mary and Sara can earn 8% on their investments, who will have more in her IRA account when she retires at the end of her 65th year AND approximately how much more will she have in her...

An individual retirement account, or IRA, earns tax-deferred interest and allows the owner to invest up...

An individual retirement account, or IRA, earns tax-deferred interest and allows the owner to invest up to $5000 each year. Joe and Jill both will make IRA deposits for 30 years (from age 35 to 65) into stock mutual funds yielding 9.1%. Joe deposits $5000 once each year, while Jill has $96.15 (which is 5000/52) withheld from her weekly paycheck and deposited automatically. How much will each have at age 65? (Round your answer to the nearest cent.) Joe $...

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...

You plan to invest $2,000 in an individual retirement arrangement (IRA) today at a nominal annual...

You plan to invest $2,000 in an individual retirement arrangement (IRA) today at a nominal annual rate of 8%, which is expected to apply to all future years. a. How much will you have in the account at the end of 10 years if interest is compounded (1) annually, (2) semiannually

?You plan to invest ?$2,100 in an individual retirement arrangement? (IRA) today at a nominal annual...

?You plan to invest ?$2,100 in an individual retirement arrangement? (IRA) today at a nominal annual rate of 88?%, which is expected to apply to all future years. a. How much will you have in the account at the end of 10 years if interest is compounded? (1) annually,? (2) semiannually,? (3) daily? (assume a? 365-day year), and? (4) continuously? b. What is the effective annual? rate, EAR, for each compounding period in part a?? c. How much greater will...

You plan to invest $2 comma 1002,100 in an individual retirement arrangement (IRA) today at a...

You plan to invest $2 comma 1002,100 in an individual retirement arrangement (IRA) today at a nominal annual rate of 88%, which is expected to apply to all future years.a. How much will you have in the account after 99 years if interest is compounded (1) annually, (2) semiannually, (3) daily (assume a 365-day year), and (4) continuously?b. What is the effective annual rate, EAR, for each compounding period in part a? c. How much greater will your IRA balance...

Question