Assume you want to retire early at age $54.$ You plan to save using one of the following two strategies: $(1)$ save

$$3,900$ a year in an IRA beginning when you are $24$ and ending when you are $54(30$ years$)$ or $(2)$ wait until you

are $44$ to start saving and then save $$11,700$ per year for the next $10$ years. Assume you will earn the historic

stock market average of $14\%$ per year.

Requirements

How much out$-$of$-$pocket cash will you invest under the two options?

How much savings will you have accumulated at age $54$ under the two

options?

Explain the results.

If you let the savings continue to grow for eight more years $($with no further

out$-$of$-$pocket investments$),$ under each scenario, what will the investment be

worth when you are age $62?$