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What amount of interest wil she have earned on investment

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A. The future value of a $2,000 annuity for 30 yrs at 8% compound annually.

b. The future value of a $2,000 annuity for 30 years at 8% compound semiannually.

c. The future value of a $2,000 annuity for 30 years at 8% compound quarterly.

d. How much extra interest is earned onthe annuity above simply by chnaging the compounding period from annually to quarterly?

e. How much extra interest would be earned by changing from annual compounding to daily compounding?

f. Louisa set up an individual retirment account (IRA account) on her 35th birthday. She contributed $2,000 to the account on each subsequent birthday through her 65th. The account earned 8% compounded annually. What amount of interest (in dollars) wil she have earned on this investment?

g. Suppose she had startd an IRA account 10 yrs earlier whe she was 25 years old. How much would additional inte33rret wold she have earned on this investment by age 65? (Hint: Her first payment into the account was on which birthday?)

Reference no: EM131029054

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