You are 25 years old and decide to start saving for your retirement. You plan to save $4,000 at the end of each year (so the first deposit will be one year from now), and will make the last deposit when you retire at age 66. Suppose you earn 7% per year on your retirement savings. a. How much will you have saved for retirement? b. How much will you have saved if you wait until age 40 to start saving (again, with your first deposit at the end of the year)?
You are 25 years old and decide to start saving for your retirement. You plan to save $4,000 at the end of each year (so the first deposit will be one year from now), and will make the last deposit when you retire at age 66. Suppose you earn 7% per year on your retirement savings. a. How much will you have saved for retirement? b. How much will you have saved if you wait until age 40 to start saving (again, with your first deposit at the end of the year)?
Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 34P: You want to accumulate $1 million by your retirement date, which is 25 years from now. You will make...
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