Question
Jamaal and Miya are 22, newly married, and ready to embark on the journey of life. They both plan to retire 45 years from today.
Jamaal and Miya are 22, newly married, and ready to embark on the journey of life. They both plan to retire 45 years from today. Because their budget seems tight right now, they had been thinking that they would wait at least 10 years and then start investing $2400 per year to prepare for retirement. Miya just told Jamaal, though, that she had heard that they would actually have more money the day they retire if they put $2400 per year away for the next 10 years - and then simply let that money sit for the next 35 years without any additional payments then they would have MORE when they retired than if they waited 10 years to start investing for retirement and then made yearly payments for 35 years (as they originally planned to do).
- How much money will Jamaal and Miya have in 45 years if they do nothing for the next 10 years, then put $2400 per year away for the remaining 35 years?
- How much money will Jamaal and Miya have in 10 years if they put $2400 per year away for the next 10 years
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How much will the amount you just computed grow to if it remains invested for the remaining 35 years, but without any additional yearly deposits being made?
- How much money will Jamaal and Miya have in 45 years if they put $2400 per year away for each of the next 45 years?
Please show step by step work including formula, thank you
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