What was the value of the ira at the end of 12 years

Assignment Help Finance Basics
Reference no: EM132028170

Directions:

1. Solve the following problems. Write the solutions and explanations.

2. Show your work AND explain your reasoning using complete English sentences. Explanations must directly follow the solution for each part of the problem.

Problem:

Meagan invests $1,200 each year in an IRA for 12 years in an account that earned 5% compounded annually. At the end of 12 years, she stopped making payments to the account, but continued to invest her accumulated amount at 5% compounded annually for the next 11 years.

a. What was the value of the Ira at the end of 12 years?

b. What was the value of the investment at the end of the next 11 years?

c. How much interest did she earn?

Please help with breaking down this explanation.

Reference no: EM132028170

Questions Cloud

What is that worth today in given problem : Bill has decided to begin investing for retirement. He is going to put his tax raturn of $5,642 into the account today and then set up monthly contributions.
How the repair or maintenance service request : Prepare a document flowchart to show how the Repair/Maintenance Service Request and the Repair/Maintenance Work Order should be coordinated
Meeting between your friend and your boss : Would you arrange the meeting between your friend and your boss?
Identify specific barriers to social services : Identify specific barriers to social services that the Hernandez family experiences because of their class status (e.g., working poor).
What was the value of the ira at the end of 12 years : a. What was the value of the Ira at the end of 12 years? b. What was the value of the investment at the end of the next 11 years?
How much money will you have in savings : As a part of your savings plan at work, you have been depositing $ 250 per quarter in a savings account earning 8% interest compounded quarterly.
Calculate the balance in the equity investment account : On January 1, 2014, Compton Co. paid $20,000 for a 20% interest in General Enterprises. Calculate the balance in the Equity Investment account at December
What is the expected return on loan : If the loan is defaulted, it expects to recover 50% of its money through the sale of its collateral. What is the expected return on this loan?
Discuss the straight-line method to amortize bond premium : Paris Electric sold $3,350,000, 12%, 10-year bonds on January 1, 2017. The bonds were dated January 1 and pay interest annually on January 1.

Reviews

Write a Review

Finance Basics Questions & Answers

  Examples of agency problems

What are some examples of agency problems? What are the advantages and disadvantages of the corporate organizational structure?

  Calculate the annual end-of-year loan payment

Malcolm Jones borrowed $22,000 at a 13 percent annual interest rate to be repaid over three years. The loan is amortized into five equal annual end-of-year.

  What would be the x independent variable

If we were to use linear regression with seasonality to forecast costs, what would be the X independent variable? Got example of a logical XY pair?

  Why should not financial analysis play dominant role

Financial Analysis Write your initial response. Why should or shouldn't financial analysis play a dominant role in capital budgeting decisions?

  Finding current total amount needed to reach the goals

Provide the couple with a summary of their goals with the current total amount needed to reach their goals, showing how you arrived at the total.

  Which of cash flows would be included in capital budgeting

If the Felicia & Fred decide to purchase the building, which of the above cash flows would be included in the capital budgeting analysis? If the company decided not to purchase the building, how would your answer change?

  Determine the expected net present value of the investment

Assume $100,000 outlay for an investment with two possible payoffs: $100,000. Determine the expected net present value of the investment.

  Operational leverage of a real estate development project

What is operational leverage in the context of a real estate development project? Explain why this characteristic causes investment in a development project.

  Calculate how many call options contracts would be needed

Is one of these more effective than the other? Are the costs of each different? Calculate how many call options contracts would be needed if you were trying to hedge a portfolio of 200 shares of stock.

  Bond refunding analysis for mullet technologies

Perform a complete bond refunding analysis. What is the bond refunding's NPV? What factors would influence Mullet's decision to refund now rather than later?

  What is the enterprise entity method of valuation

What is the enterprise (entity) method of valuation and how does it differ from the equity methods of Chapters 9 and 10?

  What is the source of this conflict

What is the source of this conflict? A shoe manufacturer is considering introducing a new line of boots. When evaluating the incremental revenues from this new line, what should be considered?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd