Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Shaylea, age 22, just started working full-time and plans to deposit $5,800 annually into an IRA earning 10 percent interest compounded annually. How much would

Shaylea, age 22, just started working full-time and plans to deposit $5,800 annually into an IRA earning 10 percent interest compounded annually. How much would she have in 20 years, 30years, and 40 years? If she changed her investment period and instead invested $483.33 monthly, and the investment also changed to monthly compounding, how much would she have after the same three time periods? Comment on the differences over time.

With monthly investments and monthly compounding interest, after 20 years, Shaylea would have $?

With monthly investments and monthly compounding interest, after 30 years, Shaylea would have $?

With monthly investments and monthly compounding interest, after 40 years, Shaylea would have $?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Sport Finance

Authors: Gil Fried, Timothy D. DeSchriver, Michael Mondello

3rd Edition

1450421040, 978-1450421041

More Books

Students also viewed these Finance questions