An individual retirement account (IRA) has $10,000 in it, and the owner decides not to add...

An individual retirement account (IRA) has $10,000 in it, and the owner decides not to add any more money to the account other than interest earned at 7% compounded daily. How much will be in the account 34 years from now when the owner reaches retirement age ? Use a 365-day year.

Solutions

Expert Solution

Calculations-

Here,
Fv is the future value of amount invested
rate is the periodic interest rate
nper is no. of periods
pmt is the periodic payments
Pv is the present value of investmet
type = 0 if the amount is paid at the end of the year ,1 if it is paid at the beginning.

Please upvote if the ans is helpful.In case of doubt,do comment.Thanks.

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

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...

Your friend currently has $20,000 in an IRA (Individual Retirement Account) and estimate that it will...

Your friend currently has $20,000 in an IRA (Individual Retirement Account) and estimate that it will earn 6%/year. She is now 30 years old and plans to retire when she is 65 years old. If she wants $1,000,000 in the account in 35 years, how much more does she have to deposit every year to have the $1,000,000 total?

An individual started to contribute $3,000 on his 30th birthday into an IRA (individual retirement account)...

An individual started to contribute $3,000 on his 30th birthday into an IRA (individual retirement account) that earned him 8% annual return. On his 65th birthday, he retired after making 35 annual contributions, the last one when he celebrated his 64th birthday. How much has he amassed in his IRA on his 65th birthday? Ans.: $___________. 1. 558306 2. 516950 3. 558360 4. 516.590 B. An individual started to contribute $3,000 on his 30th birthday into an IRA (individual retirement...

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:...

Suppose that you put $3,000 per year in a Roth IRA (Individual Retirement Account) at the...

Suppose that you put $3,000 per year in a Roth IRA (Individual Retirement Account) at the end of each year. You plan to leave these contributions and any interest and dividends earned in the account (and will reinvest in the bonds and stocks that you hold in this IRA). Suppose that your investments earn 6.6% per year, compounded annually. What will your Roth account balance be at the end of 36 years? Do not round at intermediate steps in your...

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 ) Tim plans to fund his individual retirement account (IRA) with the maximum contribution of...

1 ) Tim plans to fund his individual retirement account (IRA) with the maximum contribution of $2,000 at the end of each year for the next 20 years. If tim can earn 12 percent on his contributions, how much will he have at the end of the twentieth year? 2) The present value of an ordinary annuity of $2,350 each year for eight years, assuming an opportunity cost of 11 percent, is ? 3) The future value of an ordinary...

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: $ ...

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...

Subjects