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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,
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-of-year $2.500 deposits into the IRA. how much will he have accumuiated in 35 years when he turns 65 ? b. If Hal decides to wait until age 40 to begin making end-ot-year $2,500-deposits into the IRA. how much will he have accumulated when he retires 25 yeats later? c. Using your findings in parts a and b, discuss the impact of delaying deposits into the IRA for 10 years (age 30 to age 40) on the amount aocumutated by the end of Hal's 65 th year d. Reworkpants a, b, and c assuming that Hal makes all deposits at the beginning. rather than the end. of a ach year. Olscuss the elfeot of beginning-of-year deposits on the future valive sccumulated oy the end of Ha/s 35inyear Step by Step Solution
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