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You've learned that the sooner you begin investing for your retirement, the more likely you are to achieve the financial goals you've set for yourself
You've learned that the sooner you begin investing for your retirement, the more likely you are to achieve the financial goals you've set for yourself when you're finished working full time. Consider the following two scenarios. Round your answers to the nearest dollar. Getting close to retirement, Hunter, age 50, finally decided to start his investment plan this year by putting away $1,250 every year until he retires at 65. He will invest this money in a bond mutual fund that yields an average rate of return of 6%. Getting close to retirement, Zhuang, age 55, finally decided to start his investment plan this year by putting away $1,250 every year until he retires at 65. He will invest this money in a bond mutual fund that yields an average rate of return of 6%. According to Appendix A-3 (Future Value of a Series of Equal Amounts) in your text, the compounding factor is 23.2760. According to Appendix A-3 (Future Value of a Series of Equal Amounts) in your text, the compounding factor is 13.1808. Based on the information provided, how much will Hunter have when he retires at 65? Based on the information provided, how much will Zhuang have when he retires at 65? Since Hunter started his investment program five years earlier than Zhuang, and invested a total of $ during those extra years, at age 65, Hunter will have accumulated $ Zhuang. more than What factors contributed to the difference between Hunter's and Zhuang's balances? Check all that apply. Their retirement ages Their annual contributions Compounding interest Their total contributions
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