Question 14 5 pts You want to have $250,000 balance in your individual retiremen

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Question 14 5 pts You want to have $250,000 balance in your individual retirement account (IRA), which offers 10% annual rate of return, when you retire in 25 years. How much more will you need to contribute to your IRA if you wait another 5 years before making the one-time contribution when compared to making the contribution today? NOTE: Though it is NOT required, you have the option to submit your calculations to me via Canvas Email (within the same 60-minute time limit) for possible partial credit if/when applicable! HTML Editor

Explanation / Answer

If contributed today, amount required to be contributed

= 250000/(1.10)25

= 23074

If contributed 5 years later,

250000/(1.10)20

=37161

Hence, Additional anount required to be contirbuted = 37161-23074 = 14087

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