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There are many reasons why people don't save: I don't have any extra money. I promise to start next year, I have $100... . what

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There are many reasons why people don't save: "I don't have any extra money." "I promise to start next year," "I have $100... . what will that do?" "I'd rather pay extra on my bilis and get those taken care of first." Many people who did establish a retirement plan have found that, years into their plan, they made three mistakes: - They started too late. - They put away too little. - They invested too conservatively. And these pitfalis are magnified when you consider compound interest. Consider the compound interest effect in the following two scenarios. (Note: In your caiculations, use evther the formula or the financiat calculator. Round your answers to the nearest cent.) Sam, age 30, is starting his sovings plan this year by putting away $1,050.00 at the end of every year until he reaches age 65 . He will deposit this money at his local savings and loan at an interest rate of 666 . The compounding factor is 154,760 . Sam, age 30 , is starting his savings plan this year by putting away $1,050.00 at the end of every year until he reaches age 65 . He will deposit this money at his local savings and loan at an interest rate of 6%. The compounding factor is 154.760 . Based on the information provided, by the time Sam turns. 65 , he will have $162,488.00F. Teresa, age 35, is starting her savings plan this year by putting away $1,050.00 at the end of every year until she reaches age 65 . She will deposit this money at her local savings and loan at an interest rate of 6%. The compounding factor is 111,430 . Teresa, age 35 , is starting her savings plan this year by putting away $1,0 of every year until she reaches age 65 . 5he will deposit this money at her local savings and loan at an interest rate of The compounding factor is 111.430 . Based on the information provided, by the time Teresa turns 65 , she will have 117.001.50 Sam startod his imvestment program five years earlier than Teresa and invested a total of s during those extra years. Ey the time Sam turns 65 , he will have accumulated mare than Teress

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