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Decision #2: Planning for Retirement

Todd and Jessalyn are 25, newly married, and ready toembark on the journey of life.   They both plan to retire45 years from today. Because their budget seems tight right now,they had been thinking that they would wait at least 10 years andthen start investing $2400 per year to prepare for retirement.Jessalyn just told Todd, though, that she had heard that they wouldactually have more money the day they retire if they put $2400 peryear away for the next 10 years - and then simply let that moneysit for the next 35 years without any additional payments - thanthey would have if they waited 10 years to start investing forretirement and then made yearly payments for 35 years (as theyoriginally planned to do).  

Please help Todd and Jessalyn make an informeddecision:   

Assume that all payments are made at the end of ayear, and that the rate of return on all yearly investments will be8.4% annually.

A. How much money will Todd and Jessalyn have in 45 years ifthey do nothing for the next 10 years, then puts $2400 per yearaway for the remaining 35 years?

B. How much money will Todd and Jessalyn have in 10 years ifthey put $2400 per year away for the next 10 years?

B-2) How much will the amount you just computed grow to if itremains invested for the remaining 35 years, but without anyadditional yearly deposits being made?

C. How much money will Todd and Jessalyn have in 45 years ifthey put $2400 per year away for each of the next 45 years?

D. How much money will Todd and Jessalyn have in 45 years ifthey put away $200 per MONTH at theend of each month for the next 45 years?(Remember to adjust the 8.4% annual rate to a Rate permonth!) (Round this rate per month to 5 places past thedecimal)

                                                                  example of rounding: .062134 = .06213 or 6.213%

E. If Todd and Jessalyn wait 25 years (after the kids areraised!) before they put anything away for retirement, how muchwill they have to put away at the end of eachyear for 20 years in order to have $1,000,000 savedup on the first day of their retirement 45 years from today?