Larry started contributing to his IRA at age 32. In the first 12 years of his working
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Question:
Larry started contributing to his IRA at age 32. In the first 12 years of his working career, he used his discretionary income to buy a home, upgrade the family cars, take vacations, and pursue his golfing hobby. At age 32, he made his first $6,000 contribution to an IRA and contributed $6,000 every year up until age 65 (33 contributions). He plans to retire at age 65 and make withdrawals from his IRA.
IRA accounts grow at an 8% annual rate. Do not consider any tax or inflation effect.
What is the FV up to age 32? What is the FV from age 32 up to 65?
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