Question
Lindsay is 25 years old and has a new job in web development. She wants to make sure that she is financially sound in 30
Lindsay is 25 years old and has a new job in web development. She wants to make sure that she is financially sound in 30 years, so she plans to invest the same amount into a retirement account at the end of every year for the next 30 years. Note that because Lindsay invests at the end of the year, there is no interest earned on the contribution for the year in which she contributes.
(a) Construct a data table that will show Lindsay the balance of her retirement account for various levels of annual investment and return. If Lindsay invests $11,000 at a return of 7% how much will she have (in dollars) in her retirement account at the end of 30 years. (Round your answer to the nearest dollar.)
$ ---------------------
(b) Develop the two-way table for annual investment amounts of $5,000 to $20,000 in increments of $1,000 and for returns of 0% to 12% in increments of 1%. Using the table, what are the minimum annual investments Lindsay must contribute (in dollars) for annual rates ranging from 7% to 11% to accrue a final value of $1,300,000 after 30 years. (Round your answers up to the nearest thousand dollars.)
Annual Return | Minimum Annual Investment |
---|---|
7% | $ |
8% | $ |
9% | $ |
10% | $ |
11% | $ |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started