Question
In: Finance
Following her 18th birthday, Madison began investing $26 at the end of each week in an...
Following her 18th birthday, Madison began investing $26 at the end of each week in an account earning 6% per year compounded weekly. She plans to continue making weekly investments until she turns 68. If she had waited until she turned 48, how much would she have to invest weekly in order to have the same retirement nest egg at age 68? Round to the nearest cent.
Solutions
Expert Solution
| Future value if weekly investments are made from age 18 | $429,278.71 |
| Amount to invest weekly if the investments start at age 48 | $213.70 |
Using excel formulae as below
| Future value if weekly investments are made from age 18 | =FV(6%/52,(68-18)*52,-26) |
| Amount to invest weekly if the investments start at age 48 | =PMT(6%/52,(68-48)*52,,-C2) |
WORKINGS
jeff jeffy answered 5 months agoRelated Solutions
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