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You have just made your first $4,000 contribution to your individual retirement account. Assume you earn an annual return 11.05 percent and make no additional contributions. What will your account be worth when you retire in 44 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Account value $What if you wait 10 years before contributing? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Account value

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Answer:

Results are below.

Explanation:

Giving the following information:

Initial deposit= $4,000

Interest rate= 11.05% annual compound

First, we need to calculate the future value of the account in 44 years. We will use the following formula:

FV= PV*(1+i)^n

FV= 4,000*(1.1105^44)

FV= $402,602.77

Now, for 34 years:

FV= 4,000*(1.1105^34)

FV= $141,153.33

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