Suppose you plan to save $2,000 per year for the next 20 years and that you can earn 5% on your savings.

a. How much will you accumulate by the end of the 20 years?

Using the above as the base case, consider changing the following variables. That is, in each subsequent case, leave all variables as originally specified and change the one variable in question.

b. How much would you accumulate if you doubled your yearly savings?

c. How much would you accumulate if you doubled the interest rate you earn?

d. How much would you accumulate if you doubled the number of years over which you saved?