Bob makes his first $1,050 deposit into an IRA eaming 6.5% compounded annualy on the day he tuns 23 and his last $1,050 deposit on the day he turns 46 (24 equal deposits in all) With no additional deposits, the money in the IRA continues to earn 6.5% interest compounded annually until Bob retires on his 65th birthday. How much is the IRA worth when Bob retires? Value of the IRA on Bob's 65th birthday: (Note: The answer is a dolar amount, should include a dollar sign, and should be accurate to two decimal places).

Bob makes his first $1,050 deposit into an IRA eaming 6.5% compounded annualy on the day he tuns 23 and his last $1,050 deposit on the day he turns 46 (24 equal deposits in all) With no additional deposits, the money in the IRA continues to earn 6.5% interest compounded annually until Bob retires on his 65th birthday. How much is the IRA worth when Bob retires? Value of the IRA on Bob's 65th birthday: (Note: The answer is a dolar amount, should include a dollar sign, and should be accurate to two decimal places).

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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MCQ'S: 16) An insurance company offers you an end-of-year annuity of $48,000 per year for the next 20 years. They claim your return on the annuity is 9 percent. What should you be willing to pay today for this annuity? a.$429,600 b.$398,144 c.$438,192 d.$408,672 17) Al Corbin is 25 years old today and wishes to accumulate enough money over the next 35 years to provide for a 20-year retirement annuity of $100,000 at the beginning of each year, starting with his 60th birthday. He can save $2,000 at the end of each of the next 10 years and $3,000 each year for the following 10 years. How much must he save each year at the end of years 21 through 35 to obtain his goal? Assume that the average rate of return over the entire period will be 10%. a.$9,642 b.$24,289 c.$12,321 d.$26,969 18) Firms carry out share repurchase agreements in a number of ways, including all of the…
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QUESTION 43 A student wants save for college which begins in five years. How much will the student save assuming equal deposits of $2,500 at the beginning of each year and 4% interest? Following are appropriate factors from tables: Table % / n Present Value of annuity due $1 Present Value of ordinary annuity of $1 Future value of annuity due $1 Future Value of ordinary annuity of $1 4%/5 4.62990 4.45182 5.63298 5.41632 $11,574.75 $13,540.80 $14,082.45 $11,129.55

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