The problem you must solve is: 1. Restate the information and results you found in your discussion: (You do not need to rework the problems, just copy your discussion results here for reference) a. How much do you want to draw each year during retirement? $12,000 b. How many years until you retire? 10 months c. What was your necessary monthly savings to reach your goal? $2,000 2. Remembering that the interest earned is the difference between what you've put in and the total amount you have how much have you earned in interest in the discussion question? 3. Using the same interest rate as the discussion question... a. If you decided to work 5 more years before retiring (giving you longer time to save), what would your new monthly savings contribution be? $500.00 b. How much of a difference did that make in your monthly contribution? $1,500 c. Remembering that the interest earned is the difference between what you've put in and the total amount you have how much have you earned in interest? 3.7% 4. Using the same retirement age as your discussion... a. if you found an account that earns 5.2% interest instead, what would your necessary monthly savings contribution be? b. How much of a difference did that make in your monthly contribution? c. Remembering that the interest earned is the difference between what you've put in and the total amount you have how much have you earned in interest? 5. Compare your answers for parts 1 - 4... a. In which scenario do you earn the most interest? What do you think caused that? Why do you think that happened? Refer to your calculations to support your answer. b. In which scenario is your monthly contribution lowest? What do you think caused this? Why do you think that happened? Refer to your calculations to support your answer. c. Which made a bigger difference in your results: changing the time or changing the interest rate? What do you think caused this? Why do you think that happened? Refer to your calculations to support your answer The problem you must solve is: 1. Restate the information and results you found in your discussion: (You do not need to rework the problems, just copy your discussion results here for reference) a. How much do you want to draw each year during retirement? $12,000 b. How many years until you retire? 10 months c. What was your necessary monthly savings to reach your goal? $2,000 2. Remembering that the interest earned is the difference between what you've put in and the total amount you have how much have you earned in interest in the discussion question? 3. Using the same interest rate as the discussion question... a. If you decided to work 5 more years before retiring (giving you longer time to save), what would your new monthly savings contribution be? $500.00 b. How much of a difference did that make in your monthly contribution? $1,500 c. Remembering that the interest earned is the difference between what you've put in and the total amount you have how much have you earned in interest? 3.7% 4. Using the same retirement age as your discussion... a. if you found an account that earns 5.2% interest instead, what would your necessary monthly savings contribution be? b. How much of a difference did that make in your monthly contribution? c. Remembering that the interest earned is the difference between what you've put in and the total amount you have how much have you earned in interest? 5. Compare your answers for parts 1 - 4... a. In which scenario do you earn the most interest? What do you think caused that? Why do you think that happened? Refer to your calculations to support your answer. b. In which scenario is your monthly contribution lowest? What do you think caused this? Why do you think that happened? Refer to your calculations to support your answer. c. Which made a bigger difference in your results: changing the time or changing the interest rate? What do you think caused this? Why do you think that happened? Refer to your calculations to support your
