When Bo McSwine was 16, he got an after-school job at his parents' barbecue restaurant. His parents told him that if he put some of his earnings into an IRA, they would contribute an equal amount to his IRA. That year and every year thereafter, he deposited $800 into his IRA. When he became 21 years old, his parents stopped contributing, but Bo increased his annual deposit to $1,600 and continued depositing that amount annually until he retired at age 65. His IRA paid 7.75% interest. Find the following. (Round your answers to the nearest cent.) (a) The future value of the account $ 779,677.18 (b) Bo's and his parents' total contributions to the account $ 74,900 Bo's parents $ 4,500 Во (c) The total interest (d) The future value of the account if Bo waited until he was 18 before he started his IRA %24
When Bo McSwine was 16, he got an after-school job at his parents' barbecue restaurant. His parents told him that if he put some of his earnings into an IRA, they would contribute an equal amount to his IRA. That year and every year thereafter, he deposited $800 into his IRA. When he became 21 years old, his parents stopped contributing, but Bo increased his annual deposit to $1,600 and continued depositing that amount annually until he retired at age 65. His IRA paid 7.75% interest. Find the following. (Round your answers to the nearest cent.) (a) The future value of the account $ 779,677.18 (b) Bo's and his parents' total contributions to the account $ 74,900 Bo's parents $ 4,500 Во (c) The total interest (d) The future value of the account if Bo waited until he was 18 before he started his IRA %24
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Answers to B-E only please! Would very much appreciate it!
Transcribed Image Text:When Bo McSwine was 16, he got an after-school job at his parents' barbecue restaurant. His parents told him that if he put some of
his earnings into an IRA, they would contribute an equal amount to his IRA. That year and every year thereafter, he deposited $800
into his IRA. When he became 21 years old, his parents stopped contributing, but Bo increased his annual deposit to $1,600 and
continued depositing that amount annually until he retired at age 65. His IRA paid 7.75% interest. Find the following. (Round your
answers to the nearest cent.)
(a) The future value of the account
$ 779,677.18
(b) Bo's and his parents' total contributions to the account
$ 74,900
Bo's parents $ 4,500
Во
(c) The total interest
(d) The future value of the account if Bo waited until he was 18 before he started his IRA
%24
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