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You want to compare two separate retirement savings scenarios: (A) and (B). In scenario (A) you start immediately, contribute for a few years, but then

You want to compare two separate retirement savings scenarios: (A) and (B). In scenario (A) you start immediately, contribute for a few years, but then stop contributing. However, you leave the accumulated savings to compound until retirement. In scenario (B) you start later (after the end of savings in scenario A) and contribute all the way to retirement. Calculate the accumulated amount of savings at retirement for the two scenarios.

Scenario

Annual Payment

Payment Period

Total Number of Payments

Length of Investment

Interest

Rate

(A)

$2,000

End of years 1 to 8

8

25

years

14%

(B)

$2,000

End of years

9

to 25

17

25

years

14%

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