Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Eva will put $5,000 in her tax deferred retirement account each year beginning one year from today and continuing for a total of 25 years.

image text in transcribed
Eva will put $5,000 in her tax deferred retirement account each year beginning one year from today and continuing for a total of 25 years. if her investinent earns 6.00x per vear, how much will she have at the end of 25 years? Round your answer to the nearest penny. For example, $2,371.243 should be entered as 2371.24 Type your answer. 2points Identify the correct formula used in the previous problem. FV=85,000(0.06(1.06)21)FV=85,000(0.06(1.00)21)(1.06) FV=85,000[(t+285)12151]PV=$5,000[0.061(0.00)(1.06)21]PV=85,000[0.01(0.00)(1.06)21)(1.06) PV=85,00018151(3)(1+111)11+1)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Banking With Integrity The Winners Of The Financial Crisis

Authors: Dr Heiko Spitzeck , Dr Michael Pirson, Dierksme , Dr. Heiko Spitzeck , Prof. Claus Dierksmeier, Dr. Michael Pirson

1st Edition

ISBN: 0230289959,0230346499

More Books

Students also viewed these Finance questions