Question
After paying all of your yearly rent/mortgage payments as well as other living costs like food and electricity, you have $2000 left over. You have
After paying all of your yearly rent/mortgage payments as well as other living costs like food and electricity, you have $2000 left over. You have the option of spending or saving this money or a combination of both. You are 21 today and you plan to retire when you are 65. If you put money in your savings account you will receive 5% per year compounded yearly. Make a diagram that shows how much you have in savings in each of the following cases:
A: You spend 1500 and save 500
B. You spend $1000 and save $1000
C. You spend $500 and save $1500
D. You spend $0 and save $2000
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