Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

When Shannon Pegnim was 1 4 , she got an after - school job at a local pet shop. Her parents told her that if

When Shannon Pegnim was 14, she got an after-school job at a local pet shop. Her parents told her that if she put some of her earnings into an IRA, they would contribute an equal amount to her IRA. That year and every year thereafter, she deposited $1,000 into her IRA. When she became 25 years old, her parents stopped contributing, but Shannon increased her annual deposit to $2,000 and continued depositing that amount annually until she retired at age 65. Her IRA paid 8.5% interest. Find the following. (Round your answers to the nearest cent.)
(a) The future value of the account
$
Incorrect: Your answer is incorrect.
(b) Shannon's and her parents' total contributions to the account
Shannon $
Incorrect: Your answer is incorrect.
Shannon's parents $
Incorrect: Your answer is incorrect.
(c) The total interest
$
Incorrect: Your answer is incorrect.
(d) The future value of the account if Shannon waited until she was 19 before she started her IRA
$
Incorrect: Your answer is incorrect.
(e) The future value of the account if Shannon waited until she was 24 before she started her IRA
$
Incorrect: Your answer is incorrect.

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

Managerial Accounting

Authors: James Jiambalvo

4th edition

9780470546888, 9780470333341, 470546883, 470333340, 978-0470578797

More Books

Students also viewed these Accounting questions

Question

How Policies Influence the Trade Balance?

Answered: 1 week ago