math modeling

posted by .

Person A opens an IRA at age 25, contributes \$2000 per year for 10 years, but makes no additional contributions
thereafter. Person B waits until age 35 to open an IRA and contributes \$2000 per years for 30 years. There is
no initial investment in either case.

d. Determine the interest rate for which the two IRA's have equal value at age 65.

Similar Questions

1. Finance

A self-employed person deposits \$3000 annually in a retirement account (called a Keogh account) that earns 8 percent. a. How much will be in the account when the individual retires at the age of 65 if the savings program starts when …
2. Finance

A 46-year-old man deposits a total of \$2000 per period in an IRA until age 65. How much money will be in the account if the interest rate is 10% compounded semiannually with payments made at the end of each semiannual period?
3. finance

A self â€“employed person deposits \$3,000 annually in a retirement account(called a Keogh account)that earns 8 percent. a) How much will be in the account when the individual retires at the age of 65 if the savings program starts when …
4. mathematical modeling

Person A opens an IRA at age 25, contributes \$2000 per year for 10 years, but makes no additional contributes thereafter. Person B waits untill age 35 to open an IRA and contributes \$2000 per year for 30 years. There is no initial …
5. mathmodeling

Person A opens an IRA at age 25, contributes \$2000 per year for 10 years, but makes no additional contributions thereafter. Person B waits until age 35 to open an IRA and contributes \$2000 per years for 30 years. There is no initial …
6. math

Michael invested \$1600 per half-year in an IRA each half-year for 9 years earning 9% compounded semi-annually. At the end of 9 years he ceased the IRA payments, but continued to invest his accumulated amount at 10% compounded yearly …
7. finance

A self-employed person deposits \$3,000 annually in a retirement account (called a Keogh account) that earns 8 percent. a. How much will be in the account when the individual retires at the age of 65 if the savings program starts when …
8. Math

1. You need \$200,000 to retire in 10 years. You can invest monthly amounts at 5% APR at work. How much should you contribute each month?
9. everest online

2. At the end of each year a self-employed person deposits \$1,500 in a retirement account that earns 10 percent annually. a) How much will be in the accountant when the individual retires at the age of 65 if the contributions start …
10. Math

Suppose that Ramos contributes \$6000/year into a traditional IRA earning interest at the rate of 2%/year compounded annually, every year after 35 until his retirement age at age 65. At the same time, his wife Vanessa deposits \$4900/year …

More Similar Questions