Problem 4.LO1.18

Question Help

You want to compare two separate retirement savings scenarios: (A) and (B). In scenario (A) you start immediately, contribute for a few years, but then stop contributing. However, you leave the accumulated savings to compound until retirement. In scenario (B) you start later (after the end of savings in scenario A) and contribute all the way to retirement. Calculate the accumulated amount of savings at retirement for the two scenarios.

Scenario	Annual Payment	Payment Period	Total Number of Payments	Length of Investment	Interest Rate
(A)	$1,000	End of years 1 to 13	13	32 years	10 %
(B)	$1,000	End of years 14 to 32	19	32 years	10 %

Scenario				Accumulated Amount of Savings at Retirement (Future Value)
(A)				(Round to the nearest cent.)