13
Solve these two questions regarding the value of a retirement account at some point in
the future.
If the amount you can earn in interest is 10.6%, and the amount you invest today
is $4,000,
a. What is the value of this account when you retire in 43 years?
(Do not round intermediate calculations and round your answer to 2 decimal
places, e.g., 12.34.)
b. What would the value be if you waited 10 years to make the same investment? Your
retirement date does not change.
(Do not round intermediate calculations and round your answer to 2 decimal
places, e.g., 12.34.)
Account value if you start now
b. Account value if you wait 10 years