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Print Name ________________________________Final Exam Extra Credit (3 points)Due December 1, 2022 at 11:59 pmInvesting at a young age can have tremendous effects on your retirement account so it’s important you start investing early. In Part 1, enter current values and assumptions and calculate the future value of a retirement account. In Part 2, assume you wait 10 years before you start investing and calculate the future value of a retirement account. In Part 3, calculate the difference between your contributions and your retirement balances.Go to https://www.msn.com/en-us/money/tools/timevalueofmoney. Part 1. Enter current values and assumptions:a. Enter the amount of your monthly investment into your retirement account.b. Enter your expected annual return (interest rate). On average, the stock market has returned about 10% over time.c. Enter the compounding time frame.d. Enter the present value of your starting amount (the amount you can contribute today).e. Enter the number of years until you reach age 65 (depending on your birthday, most of you have45 years to invest until you reach age 65 years old).f. Press Calculate and enter the expected future value $______1,256,878__________________.Part 2. Enter values and assumptions assuming you wait 10 years before you start investing:a. Enter the amount of your monthly investment. Enter the same amount used in Part 1 (a).b. Enter the same expected annual return (interest rate) used in Part 1 (b).c. Enter the same compounding time frame used in Part 1 (c).d. Enter the same present value of your starting amount used in Part 1 (d); (the amount you contribute when you start investing).e. Enter the number of years until you reach age 65 (for most of you, you will have 35 years until you reach age 65 if you wait 10 years before you start investing).f. Press Calculate and enter the expected future value $________456,732_______________.Part 3. Calculate the effects of waiting 10 years to invest:a. If you waited 10 years before you started investing, your contributions are $_100/month x 12 months/year x 10 years = $____444,732______ less contributions. b. What is the difference between your expected retirement balances?Part 1 (f) balance $____________1256878_______________Less Part 2 (f) balance $____________456732________________Difference in retirement $____________800,146________________Notice how the less contributions in Part 3 (a) affects your smaller retirement


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UNCC ACCT 2121 - Final Exam

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