Complete the following homework scenario, Business & Finance Assignment Help

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Business Finance

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This exercise should be done in "EXCEL SPREADSEET".
  • 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 effect.

  • 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.

attached is one exemple on how to creat the chart with formula.

Unformatted Attachment Preview

Question 4: Bob and Tanika are both married, working adu Tanika: She began working at age 19 and began making an  Bob: Bob started his IRA at age 32. The first 12 years of his  bob Interest n pmt pv type fv 0.083 33 -3500 0 0 543603.9 tanika 0.083 12 -3500 0 0 67613.4 Interest n pmt pv type fv 0.083 33 -3500 0 1 588723 0.083 12 -3500 0 1 73225.31 ried, working adults. They both plan for retirement and consider the $ began making an annual contribution of $3,500 at the first of the year rst 12 years of his working career, he used his discretionary income to b nd consider the $3,500 annual contribution a must. e first of the year beginning with her first year. She makes 12 contribut onary income to buy a home, upgrade the family cars, take vacations, a makes 12 contributions. She worked until she was 31 and then left full ti , take vacations, and pursue his golfing hobby. At age 32, he made his nd then left full time work to have children and be a stay at home mom e 32, he made his first $3,500 contribution to an IRA, and contributed stay at home mom. She left her IRA invested and plans to begin drawin , and contributed $3500 every year up until age 65, a total of 33 years ns to begin drawing from her IRA when she is 65. total of 33 years / contributions. He plans to retire at age 65 and mak t age 65 and make withdrawals from his IRA.
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Explanation & Answer

Here is the answer. Thanks.

Calculation of Future Value of IRA
Lisa
Interest Rate
7%
At 32 n
13
Years Old PMT
-2000
Type
0
FV
$40,281.29

Interest Rate
n
At 65 PMT
Years Old PV
Type
FV

7%
33
0
$40,281.29
0
$375,636.68

Bob
7%
0
0
0
0

7%
33
-2000
0
0
$237,866.85

IRA Policy of Lisa
From the beginning of age 20 (At the time of Starting of her job) began making annula contribution ...


Anonymous
I was struggling with this subject, and this helped me a ton!

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