Hal Thomas, a 25 year old college graduate, wishes to retire at the age of 65. To supplement other sources of retirement income, he can deposit $2,000 each year into a tax-deferred individual retirement arrangement (IRA). The IRA will earn a return of 12% over the next 40 years.

a. If Hall makes end of year $2,100 deposits into the IRA, how much will he have accumulated in 40 years when he turns 65?

b. If Hall decides to wait until age 35 to begin making end of year $2,100 deposits into IRA, how much will he have accumulated when he retires 30 years later?

c. Rework parts a and b assuming that Hal makes all deposits at the beginning, rather than the end of each year. Discuss the effect of beginning of year deposits on the future value accumulated by the end of Hal's 65th year.