PAYROLL ACCT.,2019 ED.(LL)-TEXT
19th Edition
ISBN: 9781337619783
Author: BIEG
Publisher: CENGAGE L
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Solve this accounting question problem
Transcribed Image Text:Hal Thomas, a 25-year-old college graduate, wishes to retire at
age 65. To supplement other sources of retirement income, he
can deposit $2,000 each a year into a tax-deferred individual
retirement arrangement (IRA). The IRA will earn a 10% return
over the next 40 years.
a. If Hal makes annual end-of-year $2,000 deposits into the IRA,
how much will he have accumulated by the end of his sixty-fifth
year?
b. If Hal decides to wait until age 35 to begin making annual
end-of-year $2,000 deposits into the IRA, how much will he have
accumulated by the end of his sixty-fifth year?
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