Manya and Sarah are both starting out in their careers. They choose two different paths to saving in their 401k accounts for their retirements.

Manya is 23 years old and decides to start depositing $400 monthly in her 401k which will earn 7.8% APR.

Manya will retire at the age of 70.

a) How many years will Manya be saving money in her 401k?

years

b) How much will be in Manya's 401k when she retires?

c) How much will Manya have deposited herself over her years of working from her salary?

s

d) How much will Manya have earned in interest over her years of working?

Sarah waits to begin depositing money into a 401k (for various reasons that seemed important at the time...) until she was 35 years old. She decides to deposit twice as much as Manya per month hoping to catch up. Assume that Sarah gets the same 7.8% APR and will retire at the same age of 70.

e) How many years will Sarah be saving money in her 401k.

vears

f) How much will Sarah be depositing in her account each month?

g) How much will be in Sarah's 401k when she retires?

h) How much will Sarah have deposited herself over her years working from her salary?

i) How much will Sarah have earned in interest over her years of working?

j) How much more will Sarah have deposited than Manya in her account over the years of working?

k) How much money will Sarah have lost in interest by starting late, even though she deposited more?