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Retirement planning Personal Finance Problem Hal Thomas, a 35-year-old college graduate, wishes t...

Retirement planning Personal Finance Problem Hal Thomas, a 35-year-old college graduate, wishes to retire at age 60. To suppl

Retirement planning Personal Finance Problem Hal Thomas, a 35-year-old college graduate, wishes to retire at age 60. To supplement other sources of retirement incom e, he can deposit S2.200 each year into a tax-deferred individual retirement arrangement (IRA). The IRA will earn a return of 11% over the next 25 years. a. If Hal makes end-of-year $2,200 deposits into the IRA, how much will he have accumulated in 25 years when he turns 60? b. If Hal decides to wait until age 45 to begin making end-of-year $2,200 deposits into the IRA, how much will he have accumulated when he retires 15 years later? c. Using your findings in parts a and b, discuss the impact of delaying deposits into the IRA for 10 years (age 35 to age 45) on the amount accumulated by the end of Hal's 60th year. d. Rework parts a, b, and c assuming that Hal makes all deposits at the beginning, rather than the end, of each year. Discuss the effect of beginning-of-year deposits on the future value accumulated by the end of Hal's 60th year. a. If Hal makes annual end-of-year $2,200 deposits into the IRA, the amount he will have accumulated by the end of his 60th year is cent.) (Round to the nearest
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ReportAnswer #1

CF1 FVC

2, 200 0.11 FV = * [(1 + 0.11)25-1

FV- 20, 000 12.585463803

FV$251,709.28

Hal would have accumulated $251,709.28 in his account.

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