You have just made your first $5,000 contribution to your individual retirement

Question

You have just made your first $5,000 contribution to your individual retirement account. Assume you earn a 10.5 percent rate of return and make no additional contributions.


Requirement 1:
What will your account be worth when you retire in 45 years? (Do not include the dollar sign ($). Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)


Amount $

Requirement 2:
What will your account be worth if you wait 10 years before contributing? (Do not include the dollar sign ($). Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)


Amount $

Requirement 3:
Which investment strategy is better?

Explanation / Answer

Only rate one answer please. Rating more just discourages others helping. 1. 5000*1.105^45=446963.97 2. not sure what the question is here? Like if I did it 10 years from today? If so 5000*1.105^35=164683.37. 3. It depends on if you can earn better returns now. Or if you need the money for like food and stuff

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