3. Compound Interest and its effects Understanding the Impact of Compounding There are many reasons why people don't save: "I dont have any extra money. I promise to start next year." "I have $100... what will that do?" "I'd rather pay extra on my bills 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: . 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 compound interest effect on the following 23: 52 two scenarios. 333333 Brock, age 40, is starting his savings plan this year by putting away $2,450.00 at the end of every year until he reaches age 65. He deposit this money at his local savings and loan at an interest rate of 6% The compounding factor is 54.860. Brock, age 40, is starting his savings plan this year by putting away $2,450.00 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 compounding factor is 54.860. Based on the information provided, how much will Brock have when he Carlos, age 45, is starting his savings plan this year by putting away $2,450.00 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 The compounding factor is 36.780. Based on the information provided, how much will Carlos have when he turns 657 during those extra years. At age 6s, how Brock started his investment program five years earlier than Carlos and invested a total of $ much more will Brock have accumulated than Carlos? $