The contribution into an IRA for a particular year can be made any time from January 1 of that year to April 15 of the following year. Suppose Enid and Lucy both set up traditional IRA accounts on January 1 of 2006 and each contributes $4,000 into her account for ten years at 5% interest compounded annually. Assume that Enid makes her contributions as soon as possible and Lucy makes her contributions one year later. Calculate the balances in the two accounts at the time Lucy makes her final contribution. Enid's balance is $ Lucy's balance is $
The contribution into an IRA for a particular year can be made any time from January 1 of that year to April 15 of the following year. Suppose Enid and Lucy both set up traditional IRA accounts on January 1 of 2006 and each contributes $4,000 into her account for ten years at 5% interest compounded annually. Assume that Enid makes her contributions as soon as possible and Lucy makes her contributions one year later. Calculate the balances in the two accounts at the time Lucy makes her final contribution. Enid's balance is $ Lucy's balance is $
Chapter4: Gross Income: Concepts And Inclusions
Section: Chapter Questions
Problem 21CE
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The contribution into an IRA for a particular year can be made any time from January 1 of that year to April 15 of the following year. Suppose Enid and Lucy both set up traditional IRA accounts on January 1 of 2006 and each contributes $4,000 into her account for ten years at 5% interest compounded annually. Assume that Enid makes her contributions as soon as possible and Lucy makes her contributions one year later. Calculate the balances in the two accounts at the time Lucy makes her final contribution.
Enid's balance is $
Lucy's balance is $
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