## (solution) Shaylea, age 22, just started working full-time and plans to

Shaylea, age 22, just started working full-time and plans to deposit \$5,000 annually into an IRA earning 88 percent interest compounded annually. Deposits will be made at the end of each year. How much would she have in 20 years, 30 years, and 40 years? If she changed her investment period and instead invested \$417.00 monthly and the investment also changed to monthly compounding, how much would she have after the same three time periods? C

omment on the differences over time.

With annual investments andcompounding, after 20years, Shaylea would have  how much?

.With annual investments and compounding, after 30years, Shaylea would have how much? With annual investments and compounding, after 40years, Shaylea would have how much (Round to the nearestcent.)

With monthly investments and monthly compounding interest, after 20years, Shaylea would have how much. (Round to the nearest cent.)

With monthly investments and monthly compoundinginterest, after 30years, Shaylea would have how much. (Round to the nearest cent.)With monthly investments and monthly compounding interest, after 40years, Shaylea would have how much?. (Round to the nearestcent.)

The differences are:(Select the best choice below.)

A.

the longer the money isinvested, the more you will have in the future. The more compounding periods you have in a giventime, the more money you will have in the future.

B.

the longer the money is invested the more you will have in the future. The more compounding periods you have, the less money you will have in the future because the interest rate is lower.

C.  the longer the money is

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Sep 13, 2020

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