Lindsay is 25 years old and has a new job in Web development Lindsay wants to make sure she is financially sound in 30 years., so she plans to invest the same amount into a retirement account at the end of every year for the next 30 years. Construct a data table that will show Lindsay the balance of her retirement account for various levels of annual investment and return. Develop the two-way table for annual investment amounts of $5000 to $20,000 in increments of $1,000 and for returns of 0 to 12 percent in increments of 1 percent. Note that because Lindsay invests at the end of the year, there is no interest earned on that year's contribution for the year in which she contributes.

Lindsay is 25 years old and has a new job in Web development Lindsay wants to make sure she is financially sound in 30 years., so she plans to invest the same amount into a retirement account at the end of every year for the next 30 years. Construct a data table that will show Lindsay the balance of her retirement account for various levels of annual investment and return. Develop the two-way table for annual investment amounts of $5000 to $20,000 in increments of $1,000 and for returns of 0 to 12 percent in increments of 1 percent. Note that because Lindsay invests at the end of the year, there is no interest earned on that year's contribution for the year in which she contributes.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 42P

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Lindsay is 25 years old and has a new job in web development. She wants to make sure that she is financially sound in 30 years, so she plans to invest the same amount into a retirement account at the end of every year for the next 30 years. Note that because Lindsay invests at the end of the year, there is no interest earned on the contribution for the year in which she contributes. (a) Construct a data table that will show Lindsay the balance of her retirement account for various levels of annual investment and return. If Lindsay invests $12,000 at a return of 11% how much will she have (in dollars) in her retirement account at the end of 30 years. (Round your answer to the nearest dollar.) $ (b) Develop the two-way table for annual investment amounts of $5,000 to $20,000 in increments of $1,000 and for returns of 0% to 12% in increments of 1%. Using the table, what are the minimum annual investments Lindsay must contribute (in dollars) for annual rates ranging from 7% to 11% to…
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