Question
1.Compare two retirement savings options and answer the follow up questions. Polly deposits $300 per month in an account with an APR of 5%, compounded
1.Compare two retirement savings options and answer the follow up questions. Polly deposits $300 per month in an account with an APR of 5%, compounded monthly, from age 25 to 65. George deposits $600 per month in an account with an APR of 5%, compounded monthly, from age 40 to 65.
a.How much money will Polly have in her retirement account when she turns 65?
b.How much money did she deposit?
c.How much money will George have in his retirement account when he turns 65?
d.How much money did he deposit?
e.Compare Polly and Georges final account balance with how much they contributed. What lessons does this tell us about saving/investing money? Why might some people have to wait until age 40 to start saving?
PLEASE WATCH GRAMMAR, SPELLING AND DO NOT LEAVE OUT WORDS. CLEAR FORMATTING SO IT IS READABLE. Thank you.
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Microeconomics An Intuitive Approach with Calculus
Authors: Thomas Nechyba
1st edition
538453257, 978-0538453257
