Question: (a) Patty Stacey deposits $2000 at the end of each of 5 years in an IRA. If she leaves the money that has accumulated in the IRA account for 25 additional years, how much is in her account at the end of the 30-year period? Assume an interest rate of 9%, compounded annually. 06234_ch06_hr_0369-0428.indd 399 9/26/11 12;06 PM Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and
(b) Suppose that Patty's husband delays starting an IRA for the first 10 years he works but then makes $2000 deposits at the end of each of the next 15 years. If the interest rate is 9%, compounded annually, and if he leaves the money in his account for 5 additional years, how much will be in his account at the end of the 30-year period?
(c) Does Patty or her husband have more IRA money?