(Future value of an ordinary annuity). You are graduating from college at the end of this semester and after reading The Business of Life box in this chapter, you have decided to invest $4100 at the end of each year into a Roth IRA for the next 47 years. If you earn 10% compounded annually on your investment, how much will you have when you retire in 47 years? How much would you have if you wait 10 years before beginning to save and only make 37 payments into your retirement account?
How much will you have when you retire and 47 years? $______.
How much will you have if you wait 10 years before beginning to save and only make 37 payments into your retirement account? $______.