Shaylea, age 22, just started working full-time and plans to deposit $5,400 annually into an IRA earning 8 percent interest compounded annually. How much would she have in 20 years, 30 years, and 40 years? If she changed her investment period and instead invested $450.00 monthly, and the investment also changed to monthly compounding, how much would she have after the same three time periods? Comment on the differences over time. Click the table icon to view the future value annuity table With annual investments and compounding, after 20 years, Shaylea would have $ 247,115. (Round to the nearest cent.) With annual investments and compounding, after 30 years, Shaylea would have $ 611,729. (Round to the nearest cent.) With annual investments and compounding, after 40 years, Shaylea would have $ 1,398,905. (Round to the nearest cent.) With monthly investments and monthly compounding interest, after 20 years, Shaylea would have S (Round to the nearest cent.)
Shaylea, age 22, just started working full-time and plans to deposit $5,400 annually into an IRA earning 8 percent interest compounded annually. How much would she have in 20 years, 30 years, and 40 years? If she changed her investment period and instead invested $450.00 monthly, and the investment also changed to monthly compounding, how much would she have after the same three time periods? Comment on the differences over time. Click the table icon to view the future value annuity table With annual investments and compounding, after 20 years, Shaylea would have $ 247,115. (Round to the nearest cent.) With annual investments and compounding, after 30 years, Shaylea would have $ 611,729. (Round to the nearest cent.) With annual investments and compounding, after 40 years, Shaylea would have $ 1,398,905. (Round to the nearest cent.) With monthly investments and monthly compounding interest, after 20 years, Shaylea would have S (Round to the nearest cent.)
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter14: Planning For Retirement
Section: Chapter Questions
Problem 2FPE
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Question
Shaylea, age 22, just started working full-time and plans to deposit
$5,400 annually into an IRA earning 8 percent interest compounded annually. How much would she have in 20 years, 30 years, and 40 years? If she changed her investment period and instead invested $450.00 monthly, and the investment also changed to monthly compounding, how much would she have after the same three time periods? Comment on the differences over time.
Transcribed Image Text:Shaylea, age 22, just started working full-time and plans to deposit $5,400 annually into an IRA earning 8 percent interest
compounded annually. How much would she have in 20 years, 30 years, and 40 years? If she changed her investment period
and instead invested $450.00 monthly, and the investment also changed to monthly compounding, how much would she have
after the same three time periods? Comment on the differences over time.
Click the table icon to view the future value annuity table
With annual investments and compounding, after 20 years, Shaylea would have $ 247,115. (Round to the nearest cent.)
With annual investments and compounding, after 30 years, Shaylea would have $ 611,729. (Round to the nearest cent.)
With annual investments and compounding, after 40 years, Shaylea would have $ 1,398,905. (Round to the nearest cent.)
With monthly investments and monthly compounding interest, after 20 years, Shaylea would have S
(Round to the nearest
cent.)
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