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Suppose you have 30 years to save for this lump sum in an annuity that pays you a fixed 8% interest rate. Calculate your monthly
- Suppose you have 30 years to save for this lump sum in an annuity that pays you a fixed 8% interest rate. Calculate your monthly deposit for the next thirty years, your total contribution to this account and how much interest you will earn for saving for your retirement. (SHOW ALL YOUR WORK).
- Suppose you only have 10 years to save for this lump sum in an annuity that also pays you a fixed 8% interest rate. Calculate your monthly deposit for the next ten years, your total contribution to this account and how much interest you will earn for saving for your retirement. (SHOW ALL YOUR WORK).
- Compare the results of your calculations from #3 and #4 by completing the table below. Discuss the pros and cons of saving for 10 years and 30 years. Finally, explain which you think is the better option.
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| Saving for 30 years | Saving for 10 years |
| Monthly Deposit |
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| Total Deposit |
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| Total Interest |
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Behavioral Finance And Capital Markets
Authors: A. Szyszka
5th Edition
1137338741, 9781137338747
