finance help

profileshaon0
  • Bob and Lisa are both married, working adults. They both plan for retirement and consider the $2,000 annual contribution a must.

    First, consider Lisa’s savings. She began working at age 20 and began making an annual contribution of $2,000 at the first of the year beginning with her first year. She makes 13 contributions. She worked until she was 32 and then left full time work to have children and be a stay at home mom. She left her IRA invested and plans to begin drawing from her IRA when she is 65.

    Bob started his IRA at age 32. The first 12 years of his working career, he used his discretionary income to buy a home, upgrade the family cars, take vacations, and pursue his golfing hobby. At age 32, he made his first $2,000 contribution to an IRA, and contributed $2,000 every year up until age 65, a total of 33 years / contributions. He plans to retire at age 65 and make withdrawals from his IRA.

    Both IRA accounts grow at a 7% annual rate. Do not consider any tax effects.

    • Write a two to three (2-3) paragraph summary in which you:
      Create a chart summarizing the details of the investment for both Bob and Lisa.
    • Explain the results in terms of time value of money.
    • 6 years ago
    • 5
    Answer(6)

    Purchase the answer to view it

    blurred-text
    NOT RATED
    • attachment
      future_value_of_an_annuity.docx

    Purchase the answer to view it

    blurred-text
    NOT RATED
    • attachment
      bob_and_lisa_are_both_married.docx

    Purchase the answer to view it

    blurred-text
    NOT RATED
    • attachment
      bob_and_lisa.xls
    • attachment
      bob_and_lisa.docx

    Purchase the answer to view it

    blurred-text
    NOT RATED
    • attachment
      fin_100_week_6_hmwrk_ii_1.doc

    Purchase the answer to view it

    blurred-text
    NOT RATED
    • attachment
      finance_2.docx

    Purchase the answer to view it

    blurred-text
    NOT RATED
    • attachment
      fin_100_wk_3_hw_3.docx