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 $2,300 each year into a tax-deferred individual retirement arrangement (IRA)The IRA will eam a return of 14% over the next 35 years a. If Hal makes end-of-year $2,300 deposits into the IRA, how much will he huve accumulated in 35 yours when he turns 60? b. If Hal decides to wait until age 35 to begin making end-of year $2,300 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 60th year. d. Rework parts a, b, and c assuming that Hal makes all deposits at the beginning, rather than the end of each year. Discuns the effect of beginning-of-year deposits on the future value accumulated by the end of Hal's 60th year. Tu sare Value of a single amount versus a mixed stream Personal finance problem Gina Vitale has just contracted to sell a small parcel of land that she inhanted a few years ago. The buyer is willing to pay $22,928 now, or the buyer will make a series of payments starting now and continuing at annual intervals shown in the following table. Because Gina doesn't really need the money today, she plans to let it accumulate in an account that earns 9% annual interest. Given her desire to buy a house five years after selling the lot, she decides to choose the payment alternative either the lump sum or the mixed stream-that provides the higher future value at the end of 5 years. Which alternative will she choose? HW 1 11