Ivana deposits $2000 annually into a Roth IRA that earns 6.85% compounded annually. Due to a change in employment, these deposits stop after 10 years, but the account continues to earn interest until Ivana retires 25 years after the last deposit is made. How much is in the account when Ivana retires?

Q: At age 18, Susan did nothing. She waited until she was 28 to start depositing $2000 per year at the…

A: Annuity, A = $ 2,000Interest rate, r = 12%Number of annuities = n = 65 - 28 = 37

Q: How much money will there be in the account?

A: solution A= R(1+i)n+1/i R= Contribution half year=$425 n= number of periods=48 years - 33 years =15…

Q: A 25-year-old engineer is opening an individual retirement account (IRA) at a bank. Her goal is to…

A: Given information is: A 25-year-old engineer is opening an individual retirement account (IRA) at a…

Q: Marilyn wishes to retire at age 65 with $2,000,000 in the bank. At the age 21, she decides to begin…

A: Calculate the monthly payments as follows:MS-Excel --> Formulas --> Financials -->PMT

Q: Sally deposited $250 a month in her savings account for 36 months. For the next 6 years she made no…

A: A savings account is a type of depository account offered by the bank for the purpose of customer…

Q: Eight years after opening her savings account, Macy had $7,880 in the account which earns annual…

A: Simple interest is based on the principal balance of the loan or the initial deposit in a bank…

Q: fter retiring, Sofía wants to be able to withdraw $8,500.00 every quarter from her account for 33…

A: There is need of proper planning for retirement and if you do that properly than you can achieve…

Q: After retiring, Gabriella wants to be able to withdraw $7,000.00 every quarter from her account for…

A: Future Value: It is  the worth of a resource at a particular date.  It estimates the ostensible…

Q: When Austin retires in 18 years, he wants to receive $250.00 payments at the start of every month…

A: Retirement Period = 18 years payment = $250 Interest rate = 2.6% (Compounded semi annually)

Q: Lynn estimates that when she retires at age 60, she will have $165,766.18 in her retirement account.…

A: Amount at the time of retirement = $ 165766.18 Expected Life as per Lynn = (85-60) + 3 = 28 Years…

Q: After retiring, Rosetta wants to be able to withdraw $4,000.00 every month from her account for 26…

A: Amount to withdraw per month "PMT" is $4,000 Time period is 26 years Interest rate is 6% Compounded…

Q: Connie deposits $2000 at the end of each year into her Individual Retirement Account IRA. It earns…

A: Annuity: a contract that provides income for a specified period of years, or for life. Future value…

Q: (a) Patty Stacey deposits $1200 at the end of each of 5 years in an IRA. If she leaves the money…

A: a)  Computation:

Q: (a) Patty Stacey deposits $1800 at the end of each of 5 years in an IRA. If she leaves the money…

A: Future value is the monetary value of a payment or receipt on a future period. Future value is…

Q: Sammy Jo charged $1,000 worth of merchandise one year ago on her MasterCard. which has a stated…

A: Credit cards, other digital payments are used for short-term financing. Credit cards and master…

Q: Rocio invests $170.00 a month for 9 years into an account earning 6% compounded monthly. After 9…

A: As per the guidelines, in the case of two or more individual questions, the answer for the first one…

Q: Bobbi opens an IRA account in which she deposits $3,000 per year until she retires in 50 years. If…

A: The accumulated amount can be calculated with the help of future value of annuity function

Q: Amanda deposits $90,000 into an account that pays simple interest at a rate of 3% per year. Sam…

A: For Amanda: Principal "P" = $90,000 Interest rate "r" = 3%, simple interest For Sam: Principal "P" =…

Q: (a) Patty Stacey deposits $2800 at the end of each of 5 years in an IRA. If she leaves the money…

A: Future value represents the value of principal amount(s) deposited and the accumulated interest at…

Q: Jeremy and Bill each have $57,043 to invest in a retirement account whose annual rate is 2.9% with…

A: As the compounding is monthly the effective rate = [1+(apr/12)]^12 - 1 = [1+(2.9%/12)]^12 - 1 =…

Q: Starting on July 1, 2000, Peter borrows $8,400.00 each year for 4 years from his dear Aunt May to…

A: Loan amount = $8,4000 Time period = 4 years Interest = 9% compounded semi-annually  Installment = 20…

Q: How much does Jeanette need in her account when she retires?

A: Present Value: It is computed by discounting the future annuity cash payments by an appropriate…

Q: Connie deposits $2,000 at the end of each year into her Individual Retirement Account (IRA). It…

A: Annual deposit (P) = $ 2000 Interest rate (r) = 8% Number of annual deposits (n) = 20

Q: Eugene began to save for his retirement at age 27, and for 14 years he put $ 275 per month into an…

A: Time value of money (TVM) refers to the method used to measure the amount of money at different…

Q: Autumn is making quarterly contributions of of $450 to her savings account which pays interest at…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: At the end of each quarter, a 52-year-old individual puts $1600 in a retirement account that pays…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: After retiring, Valeria wants to be able to withdraw $36,500.00 every year from her account for 27…

A: Amount to withdraw every year "PMT"  is $36,500 Time period "N" is 27 years Interest rate "I/Y" is…

Q: Kate is 28 years old today and is beginning to plan for her retirement . She wants to set aside an…

A: Computation:

Q: Derek currently has $10,579.00 in an account that pays 6.00%. He will withdraw $5,474.00 every other…

A: Future value represents the future worth of existing cash flows. It is determined by compounding…

Q: When Austin retires in 18 years, he wants to receive $250.00 payments at the start of every month…

A: given, till retirement: n = 18 years m = 2 r= 2.6% LET SEMI ANNUAL PAYMENT = A after retirement n =…

Q: Christine deposits $60,000 into an account that pays simple interest at a rate of 2% per year. Kevin…

A: Interest for Christine: Simple Interest = Amount × Interest rate = 60,000 × 2% =1200   In Simple…

Q: A father is investing 1000 ₺ , every 6 months into a life insurance account for his son. According…

A: Using Future value function in excel

Q: For 30 years, lilly contributed $180 every month to savings accountthat earns 1.6%…

A: Balance at the end of 45 years will be future value of monthly savings

Q: When she turned 30, Arwen started depositing $400 per month in a retirement account that earns 2.4%…

A: An annuity is a series of cash flows that contain a fixed amount for a specific duration at equal…

Q: At the time of her grandson's birth, a grandmother deposits $4000 in an account that pays 4.5%…

A: The value of an account is defined as the total worth of the account for holdings. Cash value is…

Q: When Michelle retires in 12 years, she wants to receive $250.00 payments at the start o every month…

A: An annuity is the equal amount of payment that has to be paid over the period.

Q: Juanita has $100 deducted from her paycheck at the end of each month and put into a savings account…

A: Monthly Payment (pmt) = $100Interest Rate (rate) = 11%Type of Interest Compounded = MonthlyTime…

Q: Meagan invests $1,200 each year in an IRA for 12 years in an account that earned 5% compounded…

A: The amount deposited each year = $1200 Interest Rate = 5% Compounded annually Years = 12 1st We need…

Q: Eugene began to save for his retirement at age 35, and for 15 years he put $ 325 per month into an…

A: $

Q: Lisa deposits $80,000 into an account that pays 6% interest per year, compounded annually. Scott…

A: We need to use simple interest and compound interest formula to calculate Interest earning Simple…

Q: (a) Patty Stacey deposits $2200 at the end of each of 5 years in an IRA. If she leaves the money…

A: Annuity refers to series of annual payment which is paid or received at start or ending of specific…

Q: How much will be in the account when the individual retires at age 65 if the savings program starts…

A: Future Value of Annuity: It represents the future worth of the present stream of annuity cash…

Q: A woman makes $200 contributions at the end of each month to a retirement account for a period of 10…

A: Value at end of contribution period is calculated by future value of annuity formula in excel i.e.…

Q: Derek plans to retire on his 65th birthday. However, he plans to work part-time until he turns…

A: We will use the concept of time value of money here. As per the concept of time value of money the…

Q: Karen has been depositing $140 at the end of each month in a tax-free retirement account since she…

A: Here, Retirement Age is 65 Age of Karen when she starts making deposits is 26 Age of Matt when he…

Q: Patty Stacey deposits $2000 at the end of each of 5 years in an IRA. If she leaves the money that…

A: If a person is depositing payments to the accounts on a regular basis then, the future value is…

Q: Barb has a retirement account of $1,000,000 that earns 2% compounded monthly. If she wishes to…

A: The present value of the annuity is the current worth of a cash flow series at a certain rate of…

Q: Bill is twenty-five years from retirement; in order to retire, Bill needs ngs account when he…

A: The concept of the time value of money states that the current worth of money is more than its value…