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Assume a 6% interest rate and annual compounding in the following two scenariOS: (1) Assume Ace put aside S10,000 a year for 4 years, making
Assume a 6% interest rate and annual compounding in the following two scenariOS: (1) Assume Ace put aside S10,000 a year for 4 years, making payments at the end of each of those four years. Ace then just let the money accumulate interest for 6 more years. How much money would Ace have after the 10-year period? (2) What would the amount be in 10 years if Ace saved for the first 4 years by making payments at the beginning of each of those four years (assuming everything else is the same as scenario (1) above)
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