Michael just graduated from college and has his first job. His salary is an entry-level employee so he has to budget his money carefully. However, he does understand the need to save money for future.

a) Assume he deposits $ 600 at the end of the each year for 10 years into an investment account earning 7%. He then stop making deposits and uses the money instead for house and car payments. How much will be in the investment account at the end of 10- year period

b) Assume Michael decided to keep the investment but does not make any additional contributions. How much he will be in the account when he retires, after 25 years.

c) Assume that Michael does not begin saving until he has worked 20 years. If he plans to retire in 15 years from that time, how much would he have to invest at the end of each year, in an accounting earning 7%, to equal balance in the account in part B.

d) Calculate the total amount of cash that Michael would pay in under parts A and B combined and the amount he would pay under part C. Why there is a difference.