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Retdrement Worksheet 2 table [ [ A ) CD: Annual Savings and Annual Compounding, 3 , 6 0 0 ] , [ Anaual Savings,

Retdrement Worksheet 2
\table[[A) CD: Annual Savings and Annual Compounding,3,600],[Anaual Savings,40],[Years until Retirement,1],[Periods,4.00%
Monthly vs. Yearly Savings
You are able to save $300 a month per year) You can invest in a CD account with 4% annual return or an equity fund with an expected annual return of 8%.
Assume that the expected annual retum of the equity fund materializes, what will be your savings in 40 years for both investment opportunities?
a) If you make annual savings of $3,400 to the CD.(assume annual compounding)
b) If you make annual savings of $3,400 to the equity fund. (assume annual compounding)
c) If you make monthly savings of $300 to the CD.(assume annual compounding)
d) If you make monthly savings of $300 to the equity. (assume annual compounding)
e) If you make monthly savings of $300 to the CD.(assume monthly compounding)
f) If you make monthly savings of $300 to the equity. (assume monthly compounding)

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