An Individual Retirement Account (IRA) is an annuity that is set up to save for retirement. IRAS differ from TDAS in that an IRA allows the participant to contribute money whenever heor she wants, whereas a TDA requires the participant to have a specific amount deducted from each of his or her paychecks.When Shannon Pegnim was 14, she got an after-school job at a local pet shop. Her parents told her that if she put some of her earnings into an IRA, they would contribute an equalamount to her IRA. That year and every year thereafter, she deposited $500 into her IRA. When she became 25 years old, her parents stopped contributing, but Shannon increased herannual deposit to $1,000 and continued depositing that amount annually until she retired at age 65. Her IRA paid 7.5% interest. Find the following. (Round your answers to the nearestcent.)(a) The future value of the account$ 519719.69(b) Shannon's and her parents' total contributions to the accountShannonShannon's parents(c) The total interest$ 468719.69(d) The future value of the account if Shannon waited until she was 19 before she started her IRA$ 357969.35(e) The future value of the account if Shannon waited until she was 24 before she started her IRA$ 245300.76

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(a) The future value of the account $ 519719.69 (b) Shannon's and her parents' total contributions to the account |x |x Shannon Shannon's parents $ (c) The total interest $ 468719.69

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter9: Deductions: Employee And Self-employed-related Expenses

Section: Chapter Questions

Problem 39P

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