You have just made a $1,500 contribution to your individual retirement account. Assume you earn a 12 percent rate of return

You have just made a $1,500 contribution to your individual retirement account. Assume you earn a 12 percent rate of return and make no additional contributions. How much more will your account be worth when you retire in 25 years than it would be if you waited another 10 years before making this contribution?    A.  $8,306.16 B.  $9,658.77 C.  $16,311.18 D.  $16,907.17 E.  $17,289.75 FV = $1,500 × (1 + .12)25 = $25,500.10 FV = $1,500 × (1 + .12)15 = $8,210.35 Difference = $17,289.75

62.	You are scheduled to receive $30,000 in two years. When you receive it, you will invest it for 5 more years, at 6 percent per year. How much money will you have 7 years from now?    A.  $38,909.19 B.  $39,381.16 C.  $40,146.77 D.  $47,209.19 E.  $51,414.73 FV = $30,000 × (1 + .06)(7-2) = $40,146.77

63.

You expect to receive $9,000 at graduation in 2 years. You plan on investing this money at 10 percent until you have $60,000. How many years will it be until this occurs?    A.  18.78 years B.  19.96 years C.  21.90 years D.  23.08 years E.  25.00 years $60,000 = $9,000 × (1 + .10)t; t = 19.90 years Total time = 2 + 19.90 = 21.90 years