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Question 2 . 5 ( 2 0 pts ) On her 2 8 th birthday, a young woman engineer decides to start saving toward building
Question pts On her th birthday, a young woman engineer decides to start saving toward building up a retirement fund that pays interest compounded monthly the market interest rate She feels that $ worth of purchasing power in todays dollars will be adequate to see her through her sunset years after her th birthday. Assume a general inflation rate of per year.
a Of she plan to save by making equal monthly deposits, what should be the amount of her monthly deposits in actual dollars? Assume the first deposit is made at the end of the first month.
b If she plan to save by making endoftheyeardeposits, increasing by $ over each subsequent year, how much would her first deposit be in actual dollars?
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