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
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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