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Gabriela is planning for her retirement. At age 3 0 , she received an inheritance of $ 5 0 , 0 0 0 , which
Gabriela is planning for her retirement. At age she received an inheritance of $ which she plans to save for retirement. She also assumes that between age and she will invest $ per year into an IRA. She wants to determine how much she will have in the bank when she retires at age assuming that she receives a annual return on these investments, compounded annually.
a Use the compound growth formula to calculate the value of Gabriela's inheritance when she attains the age of Please round to the dollar, eg $ not $
b Use the FV formula to calculate the value of Gabriela's IRA at the time that she retires at age Please round to the dollar.
c Gabriela wants to know how much she will get each month if she converts all of her retirement savings to an annuity when she retires. If at age Gabriela converts her savings from both the inheritance and her annual savings to a year annuity, how much income will she receive each year? Assume that the interest rate remains compounded annually and that she has no funds left at the end of the period. Please round to the dollar.
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