Question

Assume you can earn 8.3% per year on your investments.

a. If you invest $190,000 for retirement at age​ 30, how much will you have 35 years later for​ retirement?

b. If you wait until age 40 to invest the $190,000​, how much will you have 25 years later for​ retirement?

c. Why is the difference so​ large?

​(Round to the nearest​ dollar.)

Answer 1

Calculation-

Here,
Fv is the future value of amount invested
rate is the periodic interest rate
nper is no. of periods
pmt is the periodic payments
Pv is the present value of investmet
type = 0 if the amount is paid at the end of the year ,1 if it is paid at the beginning.

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