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Part 1: Saving for Retirement 1. Devon is young and has just graduated college with her associate's degree. She plans to start saving money
Part 1: Saving for Retirement 1. Devon is young and has just graduated college with her associate's degree. She plans to start saving money for retirement as soon as she starts her new job. By taking 10% of her monthly gross income, Devon is able to contribute (a) $ 638_ each month to a retirement plan. The account is expected to earn interest with an APR of 5.25% compounded monthly. Round answers to two decimal places. a. How much money will be in Devon's retirement account if she continues to make the same monthly investment for 40 years? (3 pt) b. Overall, Devon contributed how much of her own money into the retirement account? (4 pt) C. What percent of the final balance in Devon's retirement account was interest? (4 pt) + 2. Later in life, Devon convinces her friend Taylor to start saving for retirement as well. Even though Taylor is the same age as Devon, she hasn't started saving for retirement yet. With only 20 years left until they both plan to retire, Taylor decides she needs to invest at least twice as much as Devon each month to try to catch up to Devon's retirement plan. Taylor opens a similar retirement account to Devon's that also has an APR 5.25% compounded monthly. She will invest (b) $_1,290_ per month. Round answers to two decimal places. a. How much money will be in Taylor's retirement account if she continues to make the same monthly investment for 20 years? (3 pt) b. By the time she retires, Taylor will have contributed how much of her own money overall? (4 pt) C. What percent of the final balance in Taylor's retirement account will be interest? (4 pt) 3. Write complete sentences that identify which person had the higher amount and by how much. Round answers to two decimal places. a. Who had more money in their retirement account when they planned to retire? How much more? (4 pt) 3. Write complete sentences that identify which person had the higher amount and by how much. Round answers to two decimal places. a. Who had more money in their retirement account when they planned to retire? How much more? (4 pt)
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