on uan\'s 25th birthday, he deposited $5,000 in a retirement account. Each year
ID: 2492977 • Letter: O
Question
on uan's 25th birthday, he deposited $5,000 in a retirement account. Each year thereafter, he deposited $1,000 more than the previous year. Using a gradient series factor determine how much w in the account immediately after his 35th deposit Click here to access the TVM Factor Table Calculator the account eamed annual compound interest of 4.5% s Round entry to the nearest dollar. Tolerance is t4. he account earmed annual compound interest of SS%, s tound entry to the nearest dollar, Tolerance is t4, ick if you would like to Show Work for this question: Qpen Show workExplanation / Answer
Calculation of amount in the account if annual compounded interest is 4.5%:
Given data,
Years to Maturity, n = 35
Amount in the account = $1440741
Calculation of amount in the account if the annual compound interest rate is 5.5%:
Amount in the account = $1687645
Year Cash Flow PVF (4.5%) PV of Cash Flow 1 5000 4.4664 22331.81 2 6000 4.2740 25644.18 3 7000 4.0900 28629.87 4 8000 3.9139 31310.86 5 9000 3.7453 33707.86 6 10000 3.5840 35840.36 7 11000 3.4297 37726.7 8 12000 3.2820 39384.11 9 13000 3.1407 40828.83 10 14000 3.0054 42076.08 11 15000 2.8760 43140.21 12 16000 2.7522 44034.66 13 17000 2.6337 44772.08 14 18000 2.5202 45364.34 15 19000 2.4117 45822.57 16 20000 2.3079 46157.21 17 21000 2.2085 46378.05 18 22000 2.1134 46494.29 19 23000 2.0224 46514.51 20 24000 1.9353 46446.78 21 25000 1.8519 46298.62 22 26000 1.7722 46077.1 23 27000 1.6959 45788.8 24 28000 1.6229 45439.89 25 29000 1.5530 45036.11 26 30000 1.4861 44582.85 27 31000 1.4221 44085.12 28 32000 1.3609 43547.58 29 33000 1.3023 42974.58 30 34000 1.2462 42370.19 31 35000 1.1925 41738.15 32 36000 1.1412 41081.98 33 37000 1.0920 40404.93 34 38000 1.0450 39710 35 39000 1.0000 39000 1440741Related Questions
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