12. Hal Thomas, a 25-year-old college graduate, wishes to retire at age 65. To supplement other sources of retirement income, he can deposit $2,000 each year into a tax-deferred individual retirement arrangement (IRA). The IRA will be invested to earn an annual return of 10%, which is assumed to be attainable over the next 40 years. Question: If Hal decides to wait until age 35 to begin making annual end-of-year $2,000 deposits into the IRA, how much will he have accumulated by the end of his 65th year?
12. Hal Thomas, a 25-year-old college graduate, wishes to retire at age 65. To supplement other sources of retirement income, he can deposit $2,000 each year into a tax-deferred individual retirement arrangement (IRA). The IRA will be invested to earn an annual return of 10%, which is assumed to be attainable over the next 40 years. Question: If Hal decides to wait until age 35 to begin making annual end-of-year $2,000 deposits into the IRA, how much will he have accumulated by the end of his 65th year?
Chapter3: Income Sources
Section: Chapter Questions
Problem 41P
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Transcribed Image Text:12. Hal Thomas, a 25-year-old college graduate, wishes to retire at age 65. To
supplement other sources of retirement income, he can deposit $2,000 each year into
a tax-deferred individual retirement arrangement (IRA). The IRA will be invested to
earn an annual return of 10%, which is assumed to be attainable over the next 40
years.
Question: If Hal decides to wait until age 35 to begin making annual end-of-year
$2,000 deposits into the IRA, how much will he have accumulated by the end of his
65th year?
Transcribed Image Text:13. Hal Thomas, a 25-year-old college graduate, wishes to retire at age 65. To
supplement other sources of retirement income, he can deposit $2,000 each year into
a tax-deferred individual retirement arrangement (IRA). The IRA will be invested to
earn an annual return of 10%, which is assumed to be attainable over the next 40
years.
Question: If Hal makes annual $2,000 deposits into the IRA at the beginning of each
year, how much will he have accumulated by the end of his 65th year?
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