Compound interest is a very powerful way to save for your retirement. Saving a little and giving it time to grow is often more effective than saving a lot over a short period of time. To illustrate this, suppose your goal is to save $1 million by the age of 66 . What amount of money will be saved by socking away $3,261 per year starting at age 20 with a 7% annual interest rate. Will you achieve your goal using the long-term savings plan? What amount of money will be saved by socking away $14,562 per year starting at age 40 at the same interest rate? Will you achieve your goal using the short-term savings plan? Click the icon to view the interest and annuity table for discrete compounding when i=7% per year. The future equivalent of the long-term savings plan is $ (Round to the nearest dollar.)