# FIN 300 TVOM QUIZ 2 Solutions.pdf - FIN 300 B QUIZ 2 TIME...

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FIN 300 B QUIZ 2 TIME VALUE OF MONEY **There were multiple versions of this quiz, here is one version.** 1. Barry Cuda currently has \$22,000 in his Roth IRA which has been earning 8%. Barry is planning on depositing \$5500 annually for the next 40 years into this IRA. Assuming Barry's IRA continues earning 8% annually, what will Barry's IRA be worth at the end of 40 years? (Homework 10)
2. Bob Katz would like to save \$250,000 over the next 25 years. If Bob knows today that he will be given \$75,000 in 15 years as part of an inheritance, how much would Bob need to save annually over the next 25 years assuming he earns 7% interest? (Homework 9C)
3. Ella Funt would like to set up her retirement account that will begin in 30 years. To play it safe, she wants to assume that she will live for 35 years after she retires and she will withdraw \$160,000 annually. Assuming her account will earn 9% interest during the next 30