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 7.75% interest. Find the following. (Round your answers to the nearest cent.) (a) The future value of the account $ 779,677.18 (b) Bo's and his parents' total contributions to the account $ 74,900 Bo's parents $ 4,500 Во (c) The total interest (d) The future value of the account if Bo waited until he was 18 before he started his IRA %24

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 7.75% interest. Find the following. (Round your answers to the nearest cent.) (a) The future value of the account $ 779,677.18 (b) Bo's and his parents' total contributions to the account $ 74,900 Bo's parents $ 4,500 Во (c) The total interest (d) The future value of the account if Bo waited until he was 18 before he started his IRA %24

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter4: Gross Income: Concepts And Inclusions

Section: Chapter Questions

Problem 60CP

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