You are one of the retirement counselors at the Valley View Bank. You have been asked to give a presentation to a class of high school seniors about the importance of saving for retirement. Your boss, the vice president of the trust division, has designated an example for you to use in your presentation. The students are shown five retirement scenarios and are asked to guess which yields the most money. Note: all annuities are ordinary. Although some people stop investing, the money remains in the account at 10% interest compounded annually.

a. Look over each scenario and make an educated guess as to which investor will have the largest accumulation of money invested at 10% over the next 40 years. Then calculate the final value for each scenario. then look at the results and based on the results what message will this presentation convey to the students?

• Venus invests $1,200 per year and stops after 15 years
• Kevin waits 15 years, invests $1,200 per year for 15 years and stops
• Rafael waits 15 years, then invests $1,200 per year for 25 years
• Magda waits 10 years, invests $1,500 per year for 15 years and stops
• Heather waits 10 years, then invests $1,500 per year for 30 years