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

Graph all situations on one graph. Assume that the amount of money you have after your living costs is constant at $2000 throughout your working life.

2nd question

Complete Question 1 again, but now assume that the saving account interest rate is the following: A. 2% per year compounding annually. B. 8% per year compounding annually. Comment on the differences.