Business Assignment 1
MUST BE NEWLY COMPLETED, NOT PREVIOUSLY SUBMITTED WORK. PLAGIARISM FREE!
TEMPLATES ARE ATTACHED.
For this assignment, you will read the scenario and then use the provided Excel and Word document templates to complete your assignment before uploading them to the assignment submission area.
Scenario
Larry and Beth are both married, working adults. They both plan for retirement and consider the $6,000 annual contribution a must.
First, consider Beth’s savings. She began working at age 20 and began making an annual contribution to her IRA of $6,000 each year until age 32 (12 contributions). She then left full-time work to have children and be a stay-at-home mom. She left her IRA invested and plans to begin drawing from her IRA when she is 65.
Larry started contributing to his IRA at age 32. In the first 12 years of his working career, he used his discretionary income to buy a home, upgrade the family cars, take vacations, and pursue his golfing hobby. At age 32, he made his first $6,000 contribution to an IRA and contributed $6,000 every year up until age 65 (33 contributions). He plans to retire at age 65 and make withdrawals from his IRA.
Both IRA accounts grow at an 8% annual rate. Do not consider any tax or inflation effect.
Instructions
Create a chart summarizing the details of the investment for both Larry and Beth.
Write a one-paragraph summary in which you explain the results in terms of the time value of money for both Larry and Beth. (Hint: discuss why one person was able to save a great deal more than the other.)
***This is a template. Please type over/delete all items in red prior to submitting your assignment.
Week 6 Homework: Retirement Contribution Problem
By Type Your Name Here
FIN100: Principles of Finance
Enter the Name of Your Instructor Here
Type the Date Here (ex. February 10, 2020)
Week 6 Homework: Retirement Contribution
Instructions: In one paragraph, summarize the details of the investment for both Larry and Beth. Explain the results in terms of time value of money. Discuss why one person was able to save a great deal more than the other.
*Use black, size 12, Times New Roman, Arial, Courier, or Calibri fonts. Double-space your paragraph. Use paragraph headers as necessary to express your results. See the formatting instructions and samples under the Strayer Writing Standards link in the Course Shell.
*AFTER COMPLETING YOUR WORK, DELETE ALL ITEMS IN RED. Your font must be black.
Sources
No sources are required for this assignment, but if you include any research on retirement planning, please include your sources below.
Sample formatting for an online source:
1. Anya Kamenetz. July 10, 2015. The Writing Assignment That Changes Lives. https://www.npr.org/sections/ed/2015/07/10/419202925/the-writing-assignment-that-changes-lives
Please provide your source list below:
1. Website 1
2. Website 2
3. Website 3
PAGE
2 Input
Student Name:
Investor Up to Age 32 Age 32 up to 65 Total FV
Beth
Larry
