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Retirement planning Hal Thomas, a 25-year-old college graduate, wishes to retire at age 65. To...

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Accounting

Retirement planning Hal Thomas, a 25-year-old college graduate, wishes to retire at age 65. To supplement other sources of retirement income, he can deposit $2,000 each year into a tax-deferred individual retirement arrangement (IRA). The IRA will earn a 10% return over the next 40 years.
a. If Hal makes end-of-year $2,000 deposits into the IRA, how much will he have accumulated in 40 years when he turns 65?
b. If Hal decides to wait until age 35 to begin making end-of-year $2,000 deposits into the IRA, how much will he have accumulated when he retires 30 years later?Retirement planning Hal Thomas, a 25-year-old college graduate, wishes to retire at
age 65. To supplement other sources of retirement income, he can deposit $2,000
each year into a tax-deferred individual retirement arrangement (IRA). The IRA will
earn a 10% return over the next 40 years.
a. If Hal makes end-of-year $2,000 deposits into the IRA, how much will he have
accumulated in 40 years when he turns 65?
b. If Hal decides to wait until age 35 to begin making end-of-year $2,000 deposits into
the IRA, how much will he have accumulated when he retires 30 years later?
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