Question
The following set-up pertains to the two questions. You are considering two different strategies for a savings account that you intend to close retire exactly
The following set-up pertains to the two questions.
You are considering two different strategies for a savings account that you intend to close retire exactly 29 years from today. For Strategy 1, deposit $280 per month for 8 years (first deposit today; last one exactly 8 years from today) no new deposits will be made after the end of the deposit period, but interest continues to accrue until the account is closed. For Strategy 2, you'll make your first monthly deposit exactly 8 years from today deposit $280 per month for 21 years (last deposit exactly 29 years from today till when you close the account). The saving rate is always 7.01% compounded monthly
26.how much does strategy 1 accumulate at the time of retirement?
a. $107,333
b. $128,775
C. $157,971
D. $189,168
E. $223,440
27.much does Strategy 2 accumulate at the time of retirement?
A.$161,294
b.$5171 436.
c.$180,112
D.$193,185
E. $290,993
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