Suppose you plan on working 45 years after graduating. You set up an IRA to fund your retirement and you save $1,200 per year for the next 45 years (assume contributions are made at the end of the year). How much will be in your account when you are ready to retire? Rate of 10%

How much would you have in your account if you invested $1,200/year at the beginning of the year rather than the end of the year?