Calculation Question #4 Your business pays your 1-year-old niece $6,000 a year because she is in a company print advertisement. Her parents put her $6,000 earnings in a Roth IRA earning 14% annually and the account compounds monthly.

A. How much money will your niece have in her Roth IRA when she turns 61 (60 years of monthly compounding)?

Calculation Question #5 Assuming the facts in Calculation Question #4, you explain to your nieces parents that if they would do their homework, they could find an ETF that pays 23.5% annually, compounded monthly.

A. How much more money would your niece have if her parents used the 23.5% investment? [Hint: you have to calculate the total amount for the 23.5% investment then subtract the answer from Calculation Question #4 to get the answer]