if hal makes annual beginning of the year 2500 deposits into the ira, the amount he will have accumulated by the end of the 60th years is ?
Retirement planning Personal Finance Problem Hal Thomas, a 25-year-old college graduate, wishes to retire at age 60. To supplement other sources of retirement income, he can deposit $2,500 each year into a tax-deferred individual retirement arrangement (IRA). The IRA will earn a return of 15% over the next 35 years. a. If Hal makes end-of-year $2,500 deposits into the IRA, how much will he have accumulated in 35 years when he turns 60 ? b. If Hal decides to wait until age 35 to begin making end-of-year $2,500 deposits into the IRA, how much will he have accumulated when he retires 25 years later? c. Using your findings in parts a and b, discuss the impact of delaying deposits into the IRA for 10 years (age 25 to age 35) on the amount accumulated by the end of Hal's 60 th year. d. Rework parts a,b, and c assuming that Hal makes all deposits at the beginning, rather than the end, of each year. Discuss the effect of beginning-of-year deposits on the future value accumulated by the end of Hal's 60 th year. (Select the best answer below.) By delaying the deposits by 10 years, Hal earns a large capital gain. This gain is due to both the saved deposits of $25,000($2,50010 yrs.) and the gained compounding of interest on all of the money not deposited for 10 years. By delaying the deposits by 10 years, Hal is incurring a significant opportunity cost. This cost is due to both the lost deposits of $25,000($2,50010 yrs.) and the lost compounding of interest on all of the money for 10 years. d. If Hal makes annual beginning-of-year $2,500 deposits into the IRA, the amount he will have accumulated by the end of his 60th year is $ (Round to the nearest cent.) Retirement planning Personal Finance Problem Hal Thomas, a 25-year-old college graduate, wishes to retire at age 50. To supplement other sources of retirement income, he can deposit $2,500 each year into a tax-deferred individual cetirement arrangement (IRA). The IRA will earn a return of 15% over the next 35 years. a. If Hal makes end-of-year $2,500 deposits into the IRA, how much will he have accumulated in 35 years when he turns 60? b. If Hal decides to wait until age 35 to begin making end-of-year $2,500 deposits into the IRA, how much will he have accumulated when he retires 25 years later? c. Using your findings in parts a and b, discuss the impact of delaying deposits into the IRA for 10 years (age 25 to age 35 ) on the amount accumulated by the end of Hal's 60 th year. d. Rework parts a,b, and c assuming that Hal makes all deposits at the beginning, rather than the end, of each year. Discuss the effect of beginning-of-year deposits on the future value accumulated by the end of Hal's 60 th year. a. If Hal makes annual end-of-year \$2,500 deposits into the IRA, the amount he will have accumulated by the end of his 60 th year is (Round to the nearest cent.) b. If Hal decides to wait until age 35 to begin making annual end-of-year $2,500 deposits into the RA, the amount he will have accumulated by the end of his 60 th year is $531,982.55. (Round to the nearest cent.) c. Using your findings in parts a and b, which of the following options better describes the impact of delaying making deposits into the IRA for 10 years (age 25 to age 35 ) on the amount accumulated by the end of Hal's 60 th year? (Select the best answer below.) By delaying the deposits by 10 years, Hal earns a large capital gain. This gain is due to both the saved deposits
