When he turned 42, Jim started to contribute to his retirement account by making an annual deposit of $2500, which is matched by his employer by 150% in an ordinary annuity bearing 9 % interest compounded semiannually.

How much will he have available for him when he retires at 65?

If Jim wishes to have a total of $600,000 in his IRA when he retires, How much should his (and his employers) annual contribution be? Consider the same (r) and (n) of question# 5-a.

Consider question #5-a, and suppose that Jims contribution is $2000 but matched by his employer as double (two for one). Also suppose that Jims goal is to accumulate half a million dollar in his IRA. At what age should his retirement be to achieve that goal, given that his account bears 10% interest compounded semiannually?

6. For the following 6-a, 6-b, and 6-c, recalculate what you did in 5-a through 5c assuming that the retirement contributions are deposited in an annuity due account.

a.

b.

c.