You want to start saving for retirement. Your goal is to retire in 25 years. Assume that you have $25,000 to invest now and that you will contribute $4,800 per year.

1. What will your account be worth when you retire if you can earn 6% a year?
2. What will your account be worth if the 6% annual return is compounded monthly and instead of contributing $4,800 per year, you contribute $400 monthly (you still start with $25,000)

Assume all payments and withdrawals are made at the end of the period.

3. Why are the two amounts different?