Assume you want to retire early at age $54.$ You plan to save using one

of the following two strategies: $(1)$ save $$3,300$ a year in an IRA

beginning when you are $29$ and ending when you are $54(25$ years$)$

or $(2)$ wait until you are $42$ to start saving and then save $$6,875$ per

year for the next $12$ years. Assume you will earn the historic stock

market average of $10\%$ per year.

$($Click the icon to view the future value annuity factor table.$)$

$($Click the icon to view the future value factor table.$)$

$($Click the icon to view the present value annuity factor table.$)$

$($Click the icon to view the present value factor table.$)$

Read the requirements.

Kequirement $1.$ How mucn out$-$or$-$pocket casn will you invest unaer the

two options?

Calculate how much out$-$of$-$pocket cash you will invest under the two

options.

Option $1$:

Option $2$:

Requirement $2.$ How much savings will you have accumulated at age

$54$ under the two options?

Calculate the total amount of savings that you will have accumulated at

age $54$ under the two options. $($Round the savings to the nearest

dollar amount.$)$

Option $1$: