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will upvote Assume that it is your 22nd birthday. You decide to start saving for your retirement, which will start at age 66 . You
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Assume that it is your 22nd birthday. You decide to start saving for your retirement, which will start at age 66 . You are trying to decide between two different savings plans. Plan 1: You invest $2,000 a year (starting today) for the next n years on your birthday. You then leave the money alone earning interest, withdrawing the entire amount on your 66th birthday. You make a total of n payments. Plan 2: You wait n years before you start to invest the $2,000 a year, but once you start, you continue to invest the money every year until you turn 66 . You make a total of 44-n payments. Assuming you can get an 8% rate of return for either plan, what must n be so that the two plans result in approximately the same amount available for retirement? Build a spreadsheet and find the closest whole number for n. Assume that it is your 22nd birthday. You decide to start saving for your retirement, which will start at age 66 . You are trying to decide between two different savings plans. Plan 1: You invest $2,000 a year (starting today) for the next n years on your birthday. You then leave the money alone earning interest, withdrawing the entire amount on your 66th birthday. You make a total of n payments. Plan 2: You wait n years before you start to invest the $2,000 a year, but once you start, you continue to invest the money every year until you turn 66 . You make a total of 44-n payments. Assuming you can get an 8% rate of return for either plan, what must n be so that the two plans result in approximately the same amount available for retirement? Build a spreadsheet and find the closest whole number for n Step by Step Solution
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