Compare the results you found in Part A with the results you found in Part B. Discuss the reasons there is such a large difference in the contributions that must be made to the retirement fund during the two time periods (that is, the time period in Part A and the Part B section).

Part A:

Rate of Dollar Amount of

Return (%) the Contribution

Average marketuse the expected portfolio rate

given at the top of Section IV in the spreadsheet 7.70 % $4,482

Above-average market (+2.6 percent) 10.30 % $2,092

Below-average market (1.4 percent) 6.30 % $6,652

Part B:

Rate of Dollar Amount of

Return (%) the Contribution

Average marketuse the expected portfolio rate

given at the top of Section IV in the spreadsheet 7.70 % $30,582

Above-average market (+2.6 percent) 10.30 % $22,845

Below-average market (1.4 percent) 6.30 % $35,632

this is the original text:

D. The contributions (amounts invested) that must be made each year during your career to ensure that your retirement fund accumulates the total amount needed at retirement are:

Rate of Dollar Amount of

Return (%) the Contribution

Average marketuse the expected portfolio rate

given at the top of Section IV in the spreadsheet 7.70 % $4,482

Above-average market (+2.6 percent) 10.30 % $2,092

Below-average market (1.4 percent) 6.30 % $6,652

(The Dollar Amount of the Contribution must be computed in the spreadsheetSection IV-D. Enter the results of the computations in the appropriate spaces above.)

E. Recompute the contributions that are needed to accumulate the amount of funds required at retirement (computed in Section B) assuming you wait to begin making contributions to your retirement fund such that the number of payments you make (years) is 50 percent of the years reported in Section II. In other words, if you expect you will work for 40 years before retiring, recompute the required retirement contributions using 20 yearsthat is, assume you wait 20 years to start contributing to your retirement fund so you have only 20 years remaining until you retire. For the computation in this portion of the project, follow the instructions given in Part D of this section. Compute the annual contributions that must be made to a retirement fund for the three different markets described in Part D.

Rate of Dollar Amount of

Return (%) the Contribution

Average marketuse the expected portfolio rate

given at the top of Section IV in the spreadsheet 7.70 % $30,582

Above-average market (+2.6 percent) 10.30 % $22,845

Below-average market (1.4 percent) 6.30 % $35,632

(The Dollar Amount of the Contribution must be computed in the spreadsheetSection IV-E. Enter the results of the computations in the appropriate spaces above.)

Compare the results you found in Part D with the results you found in this section. Discuss the reasons there is such a large difference in the contributions that must be made to the retirement fund during the two time periods (that is, the time period in Part D and the time period in this section).