Your friend, currently 22 years old, is wondering whether he should start contributing to his...
50.1K
Verified Solution
Link Copied!
Question
Accounting
Your friend, currently 22 years old, is wondering whether he should start contributing to his Roth IRA starting this year, or wait until he's 32 and hopefully making more money. Help your friend out. If he can contribute $5,823 per year, starts this year and continues until his retirement at 65, what percentage of the final value of the IRA by the time he is 65, will come from the first 10 years of contributions? He plans to invest in an equity index fund with historical average rate of return of 11.71 %. Assume that the contributions are annual at the end of each year
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.