Ralph has decided to put $2,400 a year (at the end of each year) into an IRA over his 40 year working life and then retire. What will Ralph have at retirement if the account earns 10 percent compounded annually?

Select one:

a. $394,786

b. $23,470

c. $1,062,223

d. $810,917

In six years, your daughter will be going to college. You wish to have a fund that will provide her with $10,000 at the end of each of her four years in college. How much must you deposit today if the money will earn 10 percent in each of the 10 years?

Select one:

a. $29,744.65

b. $29,783.76

c. $17,878.80

d. $21,651.10