Saved to supplement his pension and social security

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Reference no: EM13974566

1. Calculate the future value of $5,000 earning 10% after one year assuming annual compounding.

2. Richard Gorman is 65 years old and about to retire. He has $500,000 saved to supplement his pension and Social Security, and would like to withdraw it in equal annual dollar amounts so that nothing is left after 15 years. How much does he have to withdraw each year if he earns 7% on his money? Round to the nearest $100.

3. Sheylea, 22 just started working full-time and plans to deposit $5,000 annually into an IRA earning 8% interest annually. How much would she have in 20 years? Round your answer to the nearest $10.

4. Shaylea, 22 just started working full-time and plans to deposit $3,000 annually into an IRA earning 12% interest annually. How much would she have in 30 years? Round to the nearest $1,000.

Reference no: EM13974566

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