Author Question: Dan plans to fund his individual retirement account (IRA) with a maximum contribution of 2,000 at ... (Read 116 times)

plus1 · **on:** Jul 10, 2018

Dan plans to fund his individual retirement account (IRA) with a maximum contribution of 2,000 at the end of each year for the next 10 years.

If Dan can earn 10 percent on his contributions, how much will he have at the end of tenth year? (Round to the nearest whole dollar)
A) 12,290
B) 20,000
C) 31,875
D) 51,880
E) 27,468

Question 2

Joe expects to receive a gift of 1,000 when he graduates one year from today. Joe can invest his gift at 6 compounded annually and he would like to use the funds in four years to purchase an engagement ring for Mabel.

How much will he have in four years to spend on a ring?
A) 1,191.02
B) 1,180.00
C) 1,200.00
D) 1,262.48
E) 1,175.00