1. Shanice Johnson, of Philadelphia, Pennsylvania, wants to invest $4,000 annually for her retirement 30 years from now. She has a conservative investment philosophy, and expect to earn a return of 3% in a tax-sheltered account. If she took a more aggressive investment approach and earned a return of 5%, how much more would Shanice accumulate? (Hint: use the ordinary annuity formula, as in find the future value of periodic payments made to an interest-bearing account.) 2. List two or three mistakes that people make when planning for retirement. In your opinion, which one might be the most serious one and why? **PLEASE USE THE FORMULA ***
1. Shanice Johnson, of Philadelphia, Pennsylvania, wants to invest $4,000 annually for her retirement 30 years from now. She has a conservative investment philosophy, and expect to earn a return of 3% in a tax-sheltered account. If she took a more aggressive investment approach and earned a return of 5%, how much more would Shanice accumulate? (Hint: use the ordinary annuity formula, as in find the future value of periodic payments made to an interest-bearing account.) 2. List two or three mistakes that people make when planning for retirement. In your opinion, which one might be the most serious one and why? **PLEASE USE THE FORMULA ***
Chapter1: Federal Income Taxation—an Overview
Section: Chapter Questions
Problem 63P
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1. Shanice Johnson, of Philadelphia, Pennsylvania, wants to invest $4,000 annually for her retirement 30 years from now. She has a conservative investment philosophy, and expect to earn a return of 3% in a tax-sheltered account. If she took a more aggressive investment approach and earned a return of 5%, how much more would Shanice accumulate? (Hint: use the ordinary
2. List two or three mistakes that people make when planning for retirement. In your opinion, which one might be the most serious one and why?
**PLEASE USE THE FORMULA ***
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