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Suppose you start saving for retirement when you are 35 years old. You invest $5,000 the first year and increase this amount by 4% each
Suppose you start saving for retirement when you are 35 years old. You invest $5,000 the first year and increase this amount by 4% each year to match inflation. a) How much money will you have saved after 30 years if the interest rate earned on the retirement account is 9% per year? b) On the other hand, you will have saved how much if the interest rate was 4% instead of the original 9%?
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