Kindly answer this as soon as possible. UrgentNOTE:It was answered before but was in excel kindly this time do not use excel. ThanksAssume that when you are 25 years old you plan to aggressively save for your retirementby contributing $5,000 a year to a tax-sheltered account. A relative of yours tells you toforget about earning 10 percent or more a year, because that is very unlikely to happen(which is true). He also tells you that you should not worry too much about whether youearn, for example, 6 or 7 percent, because it won't make a lot of difference in your finalwealth. You decide to see for yourself the various results that could occur by doing somecalculations.a. Fill in the spreadsheet below with the combinations indicated. Determine the difference inoutcomes between 9 percent for 40 years and 10 percent for 40 years.b. Calculate the difference between earning 6 percent and earning 7 percent for 20, 30 and 40years. How would you respond to your relative?5% 6% 7% 8% 9% 10%20 yrs25 угs30 yrs35 yrs40 yrs

The question is based on the concept of calculating the future value of a periodic deposit, which…

Answered: Assume that when you are 25 years old…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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4
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