You have just made your first $5,000 contribution to your individual retirement account.Assuming you earn a 5 percent rate of return and make no additional contributions,what will your account be worth when you retire in 35 years? What if you wait for 5 years before contributing?
A)$26,335.37; $23,011.60
B)$27,311.20; $29,803.04
C)$27,311.20; $22,614.08
D)$27,580.08; 21,609.71
E)$31,241.90; $32,614.08

Question

Quizplus · Accepted Answer

Future value _{35 years} = $5,000 × (1 + 0.05)³⁵ = $27,580.08Future value _{30 years} = $5,000 × (1 + 0.05)³⁰ = $21,609.71

You Have Just Made Your First $5,000 Contribution to Your