1. Assume you will retire at 67. You decide to open a retirement account that earns...

1. Assume you will retire at 67. You decide to open a retirement account that earns 8% interest. You will put $125 per month into this account starting now (age of 38 years old). How much money will you have in this account when you retire?

2. Assume you will retire at 67. You decide to open a retirement account that earns 8% interest. You put $125 per month into this account starting now (38 years old), for a 10-year period. After that, you stop contributing to this account, and the account continues to earn 8% interest. How much money will you have at age 67?

3. Assume you do not start saving now (age 38 years old), but wait for 10 years. You will retire at 67, and earn 8% on your monthly deposits of $150. How much will you have at 67?

4. Assume you will retire at 67. (you are currently age 38 years old) You decide to open a retirement account that earns 8% interest. You will put $325 per month into this account starting ten years from now. How much money will you have in this account when you retire?

Expert Solution

jeff jeffy answered 4 months ago

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