Case Scenario:
Barry wants to invest in 5-10 years. A financial planner told him that a ROTH IRA would be more profitable over time than a regular IRA.
Use formula FV=$1(1+R)n where R is the period rate and n is the number of periods.
1) Calculate the accumulated value of an investment of $2,000 at 6% compounded annually for 35 years.
2) Calculate how much money by age 60.
3) Calculate how much less he will earn investing ten years later.
4) Calculate using table 10-1 to determine how many years it takes $1.00 to double if invested at 10%: at 12%.
5) Find interest rate you need to double your money in 10 years.