Huey, Dewey, and Louie create Nest Eggs

Huey, Dewey, and Louie are triplets. They are $25$ years old and are trying to set up savings plans for themselves. They plan to retire at age $65.$ They each have different ideas. All APRs are $4\mathrm{.}4\%.$

Huey$$s plan: Plans to start now and deposit $$125$ each month into the account and leave the money in the bank until he retires at age $65.$

Dewey$$s plan: Plans to start now but Dewey doesn$$t want to be bothered with monthly payments like Huey. He wants to hang onto his money throughout the year, and then make just one payment at the end of each year. He$$ll deposit $$1500$ per year in his bank. He figures that at retirement his Nest Egg will be the same size as Huey$$s because each year, he$$s deposited just as much.

Louie$$s plan: Louie$$s a party guy! He wants to have fun with his money while he$$s young! He decides he$$ll put off saving until he$$s $45,$ at which time he$$ll start putting in twice as much per month as Huey $($$$250).$ He figures with this plan, his Nest Egg ought to be the same size as Huey$$s when they retire at age $65.($Twice as much for $(1)/(2)$ the time ought to be the same, right?$)$

$1.(10$ pts$)$ Huey$$s Retirement Plan

a$.$ Determine the number of years Huey will be saving for his retirement. He will be saving for $40$ years

b$.$ How much money will Huey personally deposit into his retirement account? Show your calculation.

c$.$ Find Huey$$s account balance when he retires at age $65.$

N $=$ FV $=$

I$\%=$ P$/$Y $=12$

PV $=$ C$/$Y $=12$

PMT $=$ PMT: END BEGIN

d$.$ How much interest will Huey$$s account earn? Show your work.

$2.(10$ pts$)$ Dewey$$s Retirement Plan

a$.$ Determine the number of years Dewey will be saving for his retirement.

b$.$ How much money will Dewey personally deposit into his retirement account? Show your calculation.

c$.$ Find Dewey$$s account balance when he retires at age $65.$

N $=$ FV $=$

I$\%=$ P$/$Y $=$

PV $=$ C$/$Y $=$

PMT $=$ PMT: END BEGIN

d$.$ How much interest will Dewey$$s account earn? Show your work.

$3.(10$ pts$)$ Louie$$s Retirement Plan

a$.$ Determine the number of years Louie will be saving for his retirement.

b$.$ How much money will Louie personally deposit into his retirement account? Show your calculation.

c$.$ Find Louie$$s account balance when he retires at age $65.$

N $=$ FV $=$

I$\%=$ P$/$Y $=$

PV $=$ C$/$Y $=$

PMT $=$ PMT: END BEGIN

d$.$ How much interest will Louie$$s account earn? Show your work.

$4.(2$ pts$)$ Did all $3$ brothers make the same Total Deposits? $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

If not, which brother deposited the most? $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

$5.(2$ pts$)$ Did all $3$ brothers earn the same amount of interest? $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

If not, which brother earned the most interest? $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

$6.(5$ pts$)$ Dewey would like to have the same amount of money as Huey when he retires. How much would Dewey$$s annual deposit have to be for him to end up with as much money as Huey?

N $=$ FV $=$

I$\%=$ P$/$Y $=$

PV $=$ C$/$Y $=$

PMT $=$ PMT: END BEGIN

$7.(5$ pts$)$ Louie would also like to have the same amount of money as Huey when he retires. How much would Louie$$s monthly deposit have to be for him to end up with as much money as Huey?

N $=$ FV $=$

I$\%=$ P$/$Y $=$

PV $=$ C$/$Y $=$

PMT $=$ PMT: END BEGIN

$8.(6$ pts$)$ What are the advantages$/$disadvantages of each brother$$s savings plan? Answers should be written in complete sentences with proper grammar and punctuation.

Huey:

$$ Advantage$($s$)$:

$$ Disadvantage$($s$)$:

Dewey:

$$ Advantage$($s$)$:

$$ Disadvantage$($s$)$:

Louie:

$$ Advantage$($s$)$:

$$ Disadvantage$($s$)$: