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Ella Vader has decided to open an IRS-approved retirement account at a local brokerage firm. Ms. Vader estimates that the account will earn 6 percent
Ella Vader has decided to open an IRS-approved retirement account at a local brokerage firm. Ms. Vader estimates that the account will earn 6 percent interest. Ella decides to deposit $4,000 into the account immediately upon opening the retirement fund. She then decides to deposit $750 per year into the account for the next twenty-five years (years 1 through 25). a. Compute the amount of money in the retirement account at the end of the twenty- five year period. b. Five years after her last deposit (year 30), she begins to withdraw money from the retirement account. If she makes twelve annual withdrawals, how much money can Ella withdraw each year? Ella Vader has decided to open an IRS-approved retirement account at a local brokerage firm. Ms. Vader estimates that the account will earn 6 percent interest. Ella decides to deposit $4,000 into the account immediately upon opening the retirement fund. She then decides to deposit $750 per year into the account for the next twenty-five years (years 1 through 25). a. Compute the amount of money in the retirement account at the end of the twenty- five year period. b. Five years after her last deposit (year 30), she begins to withdraw money from the retirement account. If she makes twelve annual withdrawals, how much money can Ella withdraw each year
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