Shaylea, age 22, just started working full-time and plans to deposit $5,900 annually into an IRA...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Shaylea, age 22, just started working full-time and plans to deposit $5,900 annually into an IRA earning 7 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 $491.67 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 FVIFA table: With annual investments and compounding, after 20 years, Shaylea would have $22,831.14. (Round to the nearest cent.) (Round to the nearest cent.) (Round to the nearest cent.) With annual investments and compounding, after 30 years, Shaylea would have $ With annual investments and compounding, after 40 years, Shaylea would have $ With monthly investments and monthly compounding interest, after 20 years, Shaylea would have $ With monthly investments and monthly compounding interest, after 30 years, Shaylea would have $ With monthly investments and monthly compounding interest, after 40 years, Shaylea would have $ The differences are: (Select the best choice below.) (Round to the nearest cent.) (Round to the nearest cent.) (Round to the nearest cent.) OA. the longer the money is invested the more you will have in the future. The more compounding periods you have, the less money you will have in the future because the interest rate is lower. OB. the longer the money is invested, the more you will have in the future. The more compounding periods you have in a given time, the more money you will have in the future. OC. the longer the money is invested. the more you will have in the future. The number of compounding periods does not have any effect on the investment. Shaylea, age 22, just started working full-time and plans to deposit $5,900 annually into an IRA earning 7 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 $491.67 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 FVIFA table: With annual investments and compounding, after 20 years, Shaylea would have $22,831.14. (Round to the nearest cent.) (Round to the nearest cent.) (Round to the nearest cent.) With annual investments and compounding, after 30 years, Shaylea would have $ With annual investments and compounding, after 40 years, Shaylea would have $ With monthly investments and monthly compounding interest, after 20 years, Shaylea would have $ With monthly investments and monthly compounding interest, after 30 years, Shaylea would have $ With monthly investments and monthly compounding interest, after 40 years, Shaylea would have $ The differences are: (Select the best choice below.) (Round to the nearest cent.) (Round to the nearest cent.) (Round to the nearest cent.) OA. the longer the money is invested the more you will have in the future. The more compounding periods you have, the less money you will have in the future because the interest rate is lower. OB. the longer the money is invested, the more you will have in the future. The more compounding periods you have in a given time, the more money you will have in the future. OC. the longer the money is invested. the more you will have in the future. The number of compounding periods does not have any effect on the investment.
Expert Answer:
Related Book For
Personal Finance Turning Money into Wealth
ISBN: 978-0133856439
7th edition
Authors: Arthur J. Keown
Posted Date:
Students also viewed these finance questions
-
Is there a relationship between depression, obesity, and hypertension? Please provide references
-
Shaylea, age 22, just started working full-time and plans to deposit $5,000 annually into an IRA earning 8 percent interest compounded annually. How much would she have in 20 years, 30 years, and 40...
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
The registrar at a prominent northeastern university recently scheduled an instructor to teach two different classes at the same exact time. Help the registrar prevent future mistakes by describing a...
-
Two engineering students wanted to determine the humidity in their dorm room. They decided to fill several glasses with tap water and add a little ice to the first glass, a little more to the second...
-
List the sampling methods available.
-
On November 20, 2017, International Foods, a U.S. company, agreed to purchase merchandise from a Hong Kong supplier at a price of HK\($10,000,000.\) The merchandise will be delivered on January 10,...
-
The issue had come up again and again in various management meetings and company seminars. Novartis had too many products and needed to reduce the product proliferation that had occurred. Thomas...
-
Bond A has the following terms: Coupon rate of interest (paid annually): 12 percent Principal: $1,000 Term to maturity: Ten years Bond B has the following terms: Coupon rate of interest (paid...
-
please give me the step by step solution, variables, constraints and answer. The assumed answer based on math solver is 60,300 so I would need the manual solution as to how did they get 60,300 2....
-
What is the sectoral shifts hypothesis?
-
What is the intertemporal substitution hypothesis? Does this argument provide a convincing account of the cyclical trend in the unemployment rate?
-
Can you think of one example where total assets is larger than total equities (that is, the sum of liabilities plus equity)?
-
Explain the accounts that are modified by the following transactions. a. The purchase of office equipment for the sales team b. The payment of a supplier invoice at due date c. The reception of raw...
-
Historically, what accounted for the policy against transracial placements? When and why did this policy begin to change?
-
Grand Garden is a hotel with 150 suites. Its regular suite price is $250 per night per suite. The hotel's total cost per night is $140 per suite and consists of the following. Variable cost Fixed...
-
7 A 29-year-old, previously healthy man suddenly collapses at a party where legal and illicit drugs are being used. Enroute to the hospital, he requires resuscitation with defibrillation to establish...
-
Define the term credit. How is credit different from open credit? What is revolving credit?
-
Russell and Charmin have current living expenses of $97,000 a year. Estimate the present value amount of income they will need to maintain their level of living in retirement. Assume an average tax...
-
What are the three primary types of taxable income, as defined by the IRS?
-
Solve the following equations for \(x\) : a. \(\cosh (x+\ln 3)=3\). b. \(2 \tanh ^{-1} \frac{x-2}{x-1}=\ln 2\). c. \(\sinh ^{2} x-7 \cosh x+13=0\).
-
Compute the following integrals: a. \(\int x e^{2 x^{2}} d x\). b. \(\int_{0}^{3} \frac{5 x}{\sqrt{x^{2}+16}} d x\). c. \(\int x^{3} \sin 3 x d x\). (Do this using integration by parts, the Tabular...
-
Find the sum for each of the series: a. \(5+\frac{25}{7}+\frac{125}{49}+\frac{625}{343}+\cdots\) b. \(\sum_{n=0}^{\infty} \frac{(-1)^{n} 3}{4^{n}}\). c. \(\sum_{n=2}^{\infty} \frac{2}{5^{n}}\). d....
Study smarter with the SolutionInn App