Find the current after-tax value of Noah's account if it was set-up as   (i) a Traditional Individual Retirement Account (IRA): $   (ii)a Roth Individual Retirement Account (Roth-IRA): $

Q: Suppose that Ramos contributes $5000/year into a traditional IRA earning interest at the rate of…

A: Amount deposit every years (PMT) = $3700 Interest rate earned on deposit ( r) = 5% Number of periods…

Q: How much money will there be in the account?

A: solution A= R(1+i)n+1/i R= Contribution half year=$425 n= number of periods=48 years - 33 years =15…

Q: 14. In the following ordinary annuity, the interest is compounded with each payment, and the payment…

A: Following information are given: For JOE: Annual investment = $5000 Time = 30 years Rate = 9.1%…

Q: Adam purchases a retirement annuity that will pay him $1,500 at the end of every six months for the…

A: Semi Annual Payment  $              1,500.00 Time Period (years) 8 Interest rate 4% Monthly…

Q: An investor deposits $100 into his credit union account that pays interest at the rate of 3.25% per…

A: “Hey, since there are multiple questions posted, we will answer first question. If you want any…

Q: Togo's monthly salary is $1080 and his monthly expenses are on average $750. Togo is looking at some…

A: Investments providing a compounding interest rate calculate interest on the principal as well as…

Q: Kun is thinking about investing $4,000 at the end of each year for 30 years in a tax-sheltered…

A: Annual investment (P) = $ 4,000 Interest rate (r) = 8.5% Number of annual deposits (n) = 30

Q: Ivana deposits $2000 annually into a Roth IRA that earns 6.85% compounded annually. Due to a…

A: Annual deposit for 10 years = $ 2000 Annual interest rate = 6.85% Period of future value = 25+10 =…

Q: In the following ordinary annuity, the interest is compounded with each payment, and the payment is…

A: We need to use ordinary annuity formula to calculate future value of all annuity payment Future…

Q: You contribute $1,000 annually to a retirement account for seven years and stop making payments at…

A: Using excel FV function

Q: David Ashley Parker, of Powder Springs, CO, is in the 22 percent marginal tax bracket and is…

A: Future value is the total worth of the amount that is deposited today or in series of payments for…

Q: Lynn estimates that when she retires at age 60, she will have $165,766.18 in her retirement account.…

A: Amount at the time of retirement = $ 165766.18 Expected Life as per Lynn = (85-60) + 3 = 28 Years…

Q: Ophria invested well and plans to retire now because she has $2,300,000 in hre tax-deferred IRA…

A: A concept through which it is studied that the current worth of money is higher than its future…

Q: An individual earns an extra $2000 each year and places this money at the end of each year into an…

A: When any regular payment is made like paying rent for the apartment or interest on the bond is…

Q: At the end of 2016, Susan had saved 65 000 € for her retirement. She plans to withdraw at the end of…

A: In order to calculate the periodic payment of an annuity, we are required to use the PMT function of…

Q: individual earns an extra $1000 each year and places this money at the end of each year into an…

A: Solved using Financial Calculator  PMT = -1000 I/Y = 7.5 N =50 CPT FV = $ 482,529.95

Q: deem invested $800 in an account that pays 4.25% interest compounded annually. Assuming no deposits…

A: Future value of money includes the original deposit and compound interest on the money.

Q: April receives $50 every six months in interest income from her bond investment. She paid $900 for…

A: Tax: Tax is a financial charge imposed by the county's government on the income of the person, and…

Q: Ryan invests a sum of money in a retirement account with an annual interest rate of 7% compounded…

A: Annual interest rate is 7% Time period is 10 years Future value is 11,008.79   To Find: Initial…

Q: An individual earns an extra $2500 each year and places this money at the end of each year into an…

A: INTEREST RATE 8.70% PERIOD (YEARS) 45 PMT (ANNUAL EARNINGS) 2500 PRESENT VALUE $0

Q: John wants to have the financial ability to withdraw $80,000 per year forever beginning 30 years…

A: The formula to compute present worth of project with infinite life period as follows: Capitalized…

Q: Zachary has opened a retirement account that will pay 4% interest each year. He plans to deposit 8%…

A: Interest Rate = 4%   Year N (Time to last deposit) Salary Sample Working Deposit Sample Working…

Q: Someone in the 15 percent tax bracket can earn 8 percent annually on his investments in a tax-exempt…

A: Calculation of After-Tax Value of Investment:The account is a tax exempt account. Hence the 15% tax…

Q: An individual earns an extra $2000 each year and places this money at the end of each year into an…

A: Time value of money (TVM) is used to measure the value of money at different point of time in the…

Q: In the following ordinary annuity, the interest is compounded with each payment, and the payment is…

A: FUTURE VALUE OF ANNUITY FORMULA: FVA=A×1+RMM×N-1RM WHERE, A= ANNUITY R=INTEREST M=FREQUENCY OF…

Q: On Juan’s 26th birthday, he invested $7,500 in a retirement account. Each year thereafter he…

A: A concept through which it is studied that the current worth of money is higher than its future…

Q: A.Jenevive  who is in the 36 percent tax bracket can earn 9 percent annually on her investments in a…

A: Solution:- We know,  Future value = Present value x (1+r) ^n where r = periodic interest rate n=…

Q: ne began to save for his retirement at age 30, and for 13 years he put $ 250 per month into an…

A: Future value of annuity is the future value of all the stream of cash flow. Future value of annuity…

Q: David Ashley Parker, of Powder Springs, CO, is in the 22 percent marginal tax bracket and is…

A: Working note:

Q: rdan, age 46, currently makes $143,000. She expects that inflation will average 2.75 percent for her…

A: = Current Income - (Tax Rate × Current Income) - (Saving Rate × Current Income) - payment made for…

Q: You contribute $2,000 annually to a retirement account for eight years and stop making payments at…

A: Computation of future value at the age of 65 for both:

Q: You annually invest $1,500 in an individual retirement account (IRA) starting at the age of 30 and…

A:

Q: Matt recently deposited $41,250 in a savings account paying a guaranteed interest rate of 2.6…

A: "Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: April paid $144,000 for an annuity that would immediately pay $1,000 per month. Her life expectancy…

A: Income that is not subject to income taxes, such as municipal bonds or coupons, is referred to as…

Q: s

A: Given  n =30 i =11%   Now Find the value of his account when he is 60 years old.

Q: How much should chuck invest semiannually in his ira to have $250,000 in it when he retires in 25…

A: Semi-annual compound interest is the interest which is added to the principal amount twice in a…

Q: John won a lottery. After taxes, he was able to take home his winnings worth $510000. He decides to…

A: We need to use compound interest formula to solve this problem A=P(1+i)n Where A=Future amount P=…

Q: Mdm. Chan, a retiree, purchased an annuity product with a lump sum of $200,000. The annuity promises…

A: An annuity is the fixed payment that an investor receives from an investment or fixed deposits made…

Q: EZ Leifer plans to retire at the age of 65 and believes he will live to be90. EZ wants to receive an…

A: Given a certain rate of return, present value (PV) is the current worth of a future sum of money or…

Q: Joseph Ray just received an inheritance of $35,775 from his great aunt. He plans to invest the funds…

A: Future value: This is the amount of present value accumulated or compounded at a rate of interest…

Q: Suppose Brianna invests $1300 each year for 5 years, in annuity that pays 6% annual interest,…

A: Future value of annuity  = P * [ (1+r)^n  - 1 ] /r  Where, P = 1300 r = 6% n = 5 years

Q: Karen has been depositing $140 at the end of each month in a tax-free retirement account since she…

A: Here, Retirement Age is 65 Age of Karen when she starts making deposits is 26 Age of Matt when he…

Q: suppose an individual earns more than M15000 a year and decide to put M10000 into retiremer plan in…

A: Amount grow with compounding of money and over the period of time grow to much larger due to…

Q: Annette has just inherited $180,000. She invests this money at a rate of return of 6.47% per year…

A: Given: Present value $180,000 Rate 6.47% Another annuity $2,851 Years 20 Compounding…

Q: Allison is 31years old and plans to retire at age 65 with $920,000 in her retirement account. What…

A: The amount required to deposit today can be calculated with the help of present value function.