1. Compound interest and its effects Understanding the Impact of Compounding There are many reasons why people don't save: "I don't have any extra money." "I promise to start hext year." "I have 5100 , .. What will that do?" "I'd rather pay extra on my bilis and get those taken care of first." Many people who did establish a retirement plan have found that, years into their plan, they made three mistakes: - Ther started too tate. - They put away too little. - They invested too conservatively. And these pitfalls are magnifled when you consider compound interest. Round your answers to the neserest cent.) Brian, age 30, is starting his savings plat thes vear by puting away $1,200,00 at the end of every year until he reaches age 65 . He wil depost this monev ot his bcal sovings and loan at an interest rate of 6%. The future value annulity interest factor is 111,434 . Based on the information provided, by the time Brian turns 65 , he will have Crystal, age 35 , is starting her savings plan this year by putting oway $1,200.00 at the end of every year unt// she reaches age 65 . She will deposit this money at her local savings and loan at an interest rate of 6%. The future value annulty interest factor is 79.0582 . Based on the information provided, by the time Crystal turns 65 , she will have Brian started his itwestment program five yeans earlier and set aside accumulated more than crystal. more than Cryitad, By the time Bran furms 6s, he will have