1 john makes annual deposits of 1300 to an an ira earning 9 compounded annually for 12 years a w

Step 1: Calculate the value of John's IRA at the end of 12 years.

Question

a) John makes annual deposits of $1300 to an IRA earning 9% compounded annually for 12 years. What was the value of his IRA at the end of 12 years? Answer = $ b) How much can John withdraw each year for the next 17 years at 9% compounded annually? (Hint: Consider John wants his money back from IRA, in other words, IRA now owes him money. Which formula do you need to use?) Answer = $ 2. Youngchang Keyboard sells a $3400 keyboard on a monthly payment plan over 4 years. a) If the interest rate is 6.5% per year, what is the monthly payment? b) If instead the interest rate is 6.75% per year, what is the monthly payment?

          a) John makes annual deposits of $1300 to an IRA earning 9% compounded annually for 12 years.
      What was the value of his IRA at the end of 12 years? Answer = $
   b) How much can John withdraw each year for the next 17 years at 9% compounded annually? (Hint: Consider John wants his money back from IRA, in other words, IRA now owes him money. Which formula do you need to use?) Answer = $

2. Youngchang Keyboard sells a $3400 keyboard on a monthly payment plan over 4 years.
   a) If the interest rate is 6.5% per year, what is the monthly payment?
   b) If instead the interest rate is 6.75% per year, what is the monthly payment?

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