Question
You want to compare two separate retirement savingsscenarios: (A) and(B). In scenario(A) you startimmediately, contribute for a fewyears, but then stop contributing.However, you leave the
You want to compare two separate retirement savingsscenarios: (A) and(B). In scenario(A) you startimmediately, contribute for a fewyears, 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 scenarioA) and contribute all the way to retirement. Calculate the accumulated amount of savings at retirement for the two scenarios.
Scenario A Annual Payment= $2,000 Payment Period= End of years 1 to 9 Total Number of Payments= 9 Length of investment= 28 years Interest rate= 20%
Scenario B Annual Payment= $2,000 Payment Period= End of years 10 to 28 Total Number of Payments=19 Length of investment= 28yrs Interest rate= 20%
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