Retirement planning Personal Finance Problem Hal Thomas, a 35-year-old college graduate, wishes to retire at age 65. To supplement other sources of retirement income, he can deposit $2,000 each year into a tax-deferred individual retirement arrangement (IRA). The IRA will earn a return of 11% over the next 30 years. a. If Hal makes end-of-year $2,000 deposits into the IRA, how much will he have accumulated in 30 years when he turns 65? b. If Hal decides to wait until age 45 to begin making end-of-year $2,000 deposits into the IRA, how much will he have accumulated when he retires 20 years later? c. Using your findings in parts a and b, discuss the impact of delaying deposits into the IRA for 10 years (age 35 to age 45) on the amount accumulated by the end of Hal's 65th year. d. Rework parts a, b, and c assuming that Hal makes all deposits at the beginning, rather than the end, of each year. Discuss the effect of beginning-of-year deposits on the future value accumulated by the end of Hal's 65th year. a. If Hal makes annual end-of-year $2,000 deposits into the IRA, the amount he will have accumulated by the end of his 65th year is $. (Round to the nearest cent.) b. If Hal decides to wait until age 45 to begin making annual end-of-year $2,000 deposits into the IRA, the amount he will have accumulated by the end of his 65th year is $. (Round to the nearest cent.) c. Using your findings in parts a and b, which of the following options better describes the impact of delaying making deposits into the IRA for 10 years (age 35 to age 45) on the amount accumulated by the end of Hal's 65th year? (Select the best answer below.) By delaying the deposits by 10 years, Hal is incurring a significant opportunity cost. This cost is due to both the lost deposits of $20,000 ($2,000 x 10 yrs.) and the lost compounding of interest on all of the money for 10 years. O By delaying the deposits by 10 years, Hal earns a large capital gain. This gain is due to both the saved deposits of $20,000 ($2,000 x 10 yrs.) and the gained compounding of interest on all of the money not deposited for 10 years. d. If Hal makes annual beginning-of-year $2,000 deposits into the IRA, the amount he will have accumulated by the end of his 65th year is $ (Round to the nearest cent.) If Hal decides to wait until age 45 to begin making annual beginning-of-year $2,000 deposits into the IRA, the amount he will have accumulated by the end of his 65th year is $ (Round to the nearest cent.) annuity is much larger than the incremental compounding on Both deposits due to the extra year of compounding from the beginning-of-year deposits instead of the end-of-year deposits. The incremental change in the the V deposit due to the larger sum on which the last year of compounding occurs. (Select from the drop-down menus.)