8.

Retirement planning Personal Finance Problem. Hal Thomas, a 30-year-old college graduate. wishes to retire at age 65. To supplement other sources of retirement income, he can deposit $2,500 each year into a tax-deferred individual retirement arrangement (IRA). The IRA will earn a return of 15% over the next 35 years. a. If Hal makes end-ofyear $2,500 deposits into the 1 RA, how much will he have aocumulated in 35 years when be turns 65 ? b. If Hal decides to wait untl age 40 to begin making end-of-year $2,500 deposits into the IRA. how much will he have accumulased when he retires 25 years later? c. Using your fondings in parts a and b, discuss the impact of delaying deposits into the iRA for 10 years (age30 to age 40) on the amount aceumulated by the end of Halis a5th yeat. d. Rework pars a, b, and c assuming that Hal makes all deposits at the beginning. rather than the end. of each year. Discuss the affect of beginning-cfyear deposits on the fusure value accutedated by the end of Hars 05 th year. a. I Hat makes annual end-ofyear $2.500 deposis into the IRA, the amoutt he will have acoumulated by the end of his o5th year is 1 Fiound to the nearest cent)