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You are 25 years old and decide to start saving for your retirement. You plan to...

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Finance

You are 25 years old and decide to start saving for yourretirement. You plan to save $5,000

at the end of each year​ (so the first deposit will be one yearfrom​ now), and will make the last deposit when you retire at age65.

Suppose you earn 8% per year on your retirement savings.

a. How much will you have saved for​retirement? The amount that you will have accumulated forretirement is _____

b. How much will you have saved if you waituntil age 35 to start saving​ (again, with your first deposit atthe end of the​ year)? ______

​(Round to the nearest​ dollar.)

Answer & Explanation Solved by verified expert
3.6 Ratings (517 Votes)
aInformation providedAnnual saving 5000Time 65 years 25 years 40 yearsInterest rate 8The question is solved by computing the future valueEnter    See Answer
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