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Activity 8.4.docx

# Activity 8.4.docx - Answer the following 1 Calculating Net...

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Answer the following: 1. Calculating Net Worth. Shelly’s assets include money in checking and savings accounts, investments in stocks and mutual funds, and personal property, including furniture, appliances, an automobile, a coin collection, and jewelry. Shelly calculates that her total assets are \$108,800. Her current unpaid bills, including an auto loan, credit card balances, and taxes total \$16,300. Calculate Shelly’s net worth. 108,800-16,300 = net worth of \$92,500 2. Calculating an IRA Accumulation. When Jamal graduated from college recently, his parents gave him \$1,000 and told him to use it wisely. Jamal decided to use the money to start a retirement account. After doing some research about different options, he put the entire amount into a tax-deferred IRA that pays 11 percent interest, compounded annually. Calculate how much money Jamal will have in his IRA at the end of ten years, assuming that the interest rate remains the same and that he does not deposit any additional money.

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• Summer '13
• N/A
• Calculation, a. Janine, nest egg

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