3. 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" promise to start next you" "I have $100 what will that do Td rather pay extra on my bills and get those taken care first. Ptany people who did establish a retirement plan have found that years into the clan, they made three mistakes They started too late. They put away too little They invested too conservatively And these pitfalls are magnified when you consider compound interest Consider the como Round your answer interest effect in the followeng two (Note: In your calculabos, une ether the formule or the finance the Larry, age 30, is starting his savlogs plan the year by putting as $2,900,00 at the end of every year be reaches a deposit this many at local savings The future salamuty interent facter is 1114348 Larry, age 30, is starting his savings plan this year by putting away $2,900.00 at the end of every year until he reaches age 65. He will deposit this money at his local savings and loan at an interest rate of 6%. The future value annuity interest factor is 111.4348. Based on the information provided, by the time Larry turns 65, he will have Megan, age 35, is starting her savings plan this year by putting away $2,900.00 at the end of every year until she reaches age 65. She will deposit this money at her local savings and loan at an interest rate of 6% The future value annuity interest factor is 79.0582. Based on the information provided, by the time Megan Turns 65, she will have $323,147.00 Larry started his investment program five years earlier and set aside more than Megan accumulated $225.274.00 $104.400.00 more than Megan. By the time Larry turns 65, he will have Grade It Now Save & Continue