Tariq Ahmed is 25 years old and is saving for her retirement. He is planning on making 40 contributions to her retirement account at the beginning of each of the next 40 years. The first contribution will be made today and the final contribution will be made 40 years from today. The retirement account will earn a return of 12 percent a year. If each contribution he makes is $5,000, how much will be in the retirement account 40 years from now?
Tariq Ahmed is 25 years old and is saving for her retirement. He is planning on making 40 contributions to her retirement account at the beginning of each of the next 40 years. The first contribution will be made today and the final contribution will be made 40 years from today. The retirement account will earn a return of 12 percent a year. If each contribution he makes is $5,000, how much will be in the retirement account 40 years from now?
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 39P
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- Tariq Ahmed is 25 years old and is saving for her retirement. He is planning on making 40 contributions to her retirement account at the beginning of each of the next 40 years. The first contribution will be made today and the final contribution will be made 40 years from today. The retirement account will earn a return of 12 percent a year. If each contribution he makes is $5,000, how much will be in the retirement account 40 years from now?
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