You have just made your first $4,500 contribution to your individual retirement

Question

You have just made your first $4,500 contribution to your individual retirement account Assume you earn a 10.70 percent rate of return and make no additional contributions. Requirement 1: What will your account be worth when you retire in 41 years? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Amount $ Requirement 2: What if you wait 10 years before contributing? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Amount $

Explanation / Answer

Requirement 1

Account worth in 41 years =4500*(1.1070^41)=$290579.5

Requirement 2

Time remaining=41-10=31 years

Account worth in 41 years =4500*(1.1070^31)= 105145

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