(Related to The Business of Life: Saving for Retirement) (Future value of an ordinary annuity) You are graduating from college at the end of this semester and after reading the The Business of Life box in this chapter, you have decided to invest
$4,900
at the end of each year into a Roth IRA for the next
44
years. If you earn
6
percent compounded annually on your investment, how much will you have when you retire in
44
years? How much will you have if you wait 10 years before beginning to save and only make
34
payments into your retirement account?
Question content area bottom
Part 1
How much will you have when you retire in
44
years?
$enter your response here (Round to the nearest cent.)
Part 2
How much will you have if you wait 10 years before beginning to save and only make
34
payments into your retirement account?
$enter your response here (Round to the nearest cent.)