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9. Future Value of Annuity. Twins Jessica and Joshua, both 25, graduated from college and began working in the family restaurant business. The first year,
9. Future Value of Annuity. Twins Jessica and Joshua, both 25, graduated from college and began working in the family restaurant business. The first year, Jessica began putting $2,000 per year in an individual retirement account and contributed to it for a total of 10 years. After 10 years she made no further contributions until she retired at age 65. Joshua did not start mak- ing contributions to his individual retirement account until he was 35, but he continued mak- ing contributions of $2,000 each year until he retired at age 65. Assuming that both Jessica and Joshua receive 10% interest per year, how much will Jessica have at retirement? How much did she contribute in total? How much will Joshua have at retirement? How much did he contribute in total? ca ha 6. Present Value. Juan would like to give his newly born grandson a gift of $10,000 on his 18th birth- day. Juan can earn 7% interest on a certificate of deposit. How much must he deposit now in order to achieve his goal? 12. Fu ha HE
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