N. Ebriate, a college student at a party university, decides to forego beer drinking and invest the $100 he saves at the end of each month in a mutual fund that is currently earning 11 percent annually. He has a job where he has earned income and invests this money in a Roth IRA.
a. How much will he have in his fund in four years upon graduation?
b. If he graduates at the age of 22 and leaves this investment in the mutual fund without adding any additional funds, how much will he have at age 60?
c. If he really enjoys his work and decides to leave the money in the fund until age 75, how much will he have?
d. If he never touches this mutual fund and dies at the age of 90, how much will he leave in his estate from only this investment?