Despite his relative youth, Samuel Hunter has started planning for his retirement. At present, he has $6,100 he can invest, and he believes that he will be able to invest that amount each year for the next 39 years-40 contributions in total. Round answers to the nearest whole number. a. If his investment earns 4% per year for the 40 years, how much will Samuel have accumulated at the end of 40 years? $ 602,842 b. If Samuel delays investing for 10 years, how will that affect the balance accumulated at the end of 40 years? $ 355,803 c. If Samuel begins investing now and finds an investment earning 5% per year for 40 years, how much more will he have accumulated than if he earns 4% ? $ 105,496 X

Despite his relative youth, Samuel Hunter has started planning for his retirement. At present, he has $6,100 he can invest, and he believes that he will be able to invest that amount each year for the next 39 years-40 contributions in total. Round answers to the nearest whole number. a. If his investment earns 4% per year for the 40 years, how much will Samuel have accumulated at the end of 40 years? $ 602,842 b. If Samuel delays investing for 10 years, how will that affect the balance accumulated at the end of 40 years? $ 355,803 c. If Samuel begins investing now and finds an investment earning 5% per year for 40 years, how much more will he have accumulated than if he earns 4% ? $ 105,496 X

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter27: Time Value Of Money (compound)

Section: Chapter Questions

Problem 6E

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