Future value of an annuity. Calculate the requested amount in each of the following scenarios. Today is January 1, 2008.
a. Jill Wilson plans to invest $2,500 at the end of each of the next 20 years in her individual retirement account. How much will she have accumulated on December 31, 2027, if she earns 6% each year compounded annually?
b. Refer to part a. How much will Jill have accumulated on December 31, 2027, if she invests the $2,500 at the beginning of each of the 20 years instead of at the end of each year?
c. Assume for this part that Jill wants to accumulate $100,000 on December 31, 2027. How much must she invest at the end of each of the next 20 years to accumulate the desired amount if the interest rate is 6% compounded annually?
d. Repeat part c, but assume Jill will make the investments at the beginning of each of the next 20 years.