n Individual Retirement Account (IRA) is an annuity that is set up to save for retirement. IRAs differ from TDAs in that an IRA allows the participant to contribute money whenever he or she wants, whereas a TDA requires the participant to have a specific amount deducted from each of his or her paychecks. When Bo McSwine was 16, he got an after-school job at his parents' barbecue restaurant. His parents told him that if he put some of his earnings into an IRA, they would contribute an equal amount to his IRA. That year and every year thereafter, he deposited $800 into his IRA. When he became 21 years old, his parents stopped contributing, but Bo increased his annual deposit to $1,600 and continued depositing that amount annually until he retired at age 65. His IRA paid 6.75% interest. If Bo McSwine had started his IRA at age 35 rather than age 16, how big of an annual contribution would he have had to have made to have the same amount saved at age 65? (Round your answer to the nearest cent.) $
Unitary Method
The word “unitary” comes from the word “unit”, which means a single and complete entity. In this method, we find the value of a unit product from the given number of products, and then we solve for the other number of products.
Speed, Time, and Distance
Imagine you and 3 of your friends are planning to go to the playground at 6 in the evening. Your house is one mile away from the playground and one of your friends named Jim must start at 5 pm to reach the playground by walk. The other two friends are 3 miles away.
Profit and Loss
The amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item.
Units and Measurements
Measurements and comparisons are the foundation of science and engineering. We, therefore, need rules that tell us how things are measured and compared. For these measurements and comparisons, we perform certain experiments, and we will need the experiments to set up the devices.
n Individual Retirement Account (IRA) is an annuity that is set up to save for retirement. IRAs differ from TDAs in that an IRA allows the participant to contribute money whenever he or she wants, whereas a TDA requires the participant to have a specific amount deducted from each of his or her paychecks.
When Bo McSwine was 16, he got an after-school job at his parents' barbecue restaurant. His parents told him that if he put some of his earnings into an IRA, they would contribute an equal amount to his IRA. That year and every year thereafter, he deposited $800 into his IRA. When he became 21 years old, his parents stopped contributing, but Bo increased his annual deposit to $1,600 and continued depositing that amount annually until he retired at age 65. His IRA paid 6.75% interest.
If Bo McSwine had started his IRA at age 35 rather than age 16, how big of an annual contribution would he have had to have made to have the same amount saved at age 65? (Round your answer to the nearest cent.)
$
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