anonymous
  • anonymous
Bob places $2,000 a year in his IRA for ten years and then invests $3,000 a year for the next ten years. Mary places $3,000 a year in her IRA for ten years and then invests $2,000 a year for the next ten years. They both have invested $50,000. If they earn 9 percent annually, how much more will Mary have earned than Bob at the end of 20 years? Round your answer to the nearest dollar.
Finance
  • Stacey Warren - Expert brainly.com
Hey! We 've verified this expert answer for you, click below to unlock the details :)
SOLVED
At vero eos et accusamus et iusto odio dignissimos ducimus qui blanditiis praesentium voluptatum deleniti atque corrupti quos dolores et quas molestias excepturi sint occaecati cupiditate non provident, similique sunt in culpa qui officia deserunt mollitia animi, id est laborum et dolorum fuga. Et harum quidem rerum facilis est et expedita distinctio. Nam libero tempore, cum soluta nobis est eligendi optio cumque nihil impedit quo minus id quod maxime placeat facere possimus, omnis voluptas assumenda est, omnis dolor repellendus. Itaque earum rerum hic tenetur a sapiente delectus, ut aut reiciendis voluptatibus maiores alias consequatur aut perferendis doloribus asperiores repellat.
jamiebookeater
  • jamiebookeater
I got my questions answered at brainly.com in under 10 minutes. Go to brainly.com now for free help!
anonymous
  • anonymous
hi for Bob he has 3 kinds of investments : 1- 2,000 $ a year for 10 years = 2,000 * (((1+0.09)^ 10 )- 1 ) / 0.09 = 2,000 * 15.192 = 30,384 $ 2- 30,384 $ constant with 9% in year for second 10 years = 30,384 * (1+ 0.09) ^ 10 = 30,384 * 2.367 = 71,919 $ 3- 3,000 $ a year just for second 10 years ! 3,000 * (((1+0.09)^20)- 1) / 0.09 - 3,000 * (((1+0.09)^10) - 1 ) / 0.09 **** it means that 20 years minus first 10 years **** 3,000 * 51.160 - 3,000 * 15.192 = 153,480 - 45,576 = 107, 913 $ ------------------------------------------ total = 71,919 + 107,913 = 179,832 $ and all of above calculates for Mary : ((3000 * 15.192) * 2.367 ) + (2000 * 51.160) - (2000 * 15.192) = ------------------------------------------ total = 107,878 + 71,936 = 179,814 $
anonymous
  • anonymous
please use apple safari or microsoft internet explorer 8 to read .

Looking for something else?

Not the answer you are looking for? Search for more explanations.