Assume that you are 20 years old and started saving for retirement on January 1, 2022. You plan to retire on December 31, 2071, when you are 70 years old. There are 50 years from the time you started investing (saving) until you retire. You have no previous or other retirement savings when you start to save. Assume there are 365 days and 52 weeks in each year from 2022 to 2071. (Ignore leap years). Assume that taxes will not affect any of the amounts or your savings. You invest $300 at the end of each month into a retirement account paying 7% compounded monthly from January 1, 2022, until you retire. Show all work and answer the following questions: 1. Assuming no withdrawals or additional payments were made, how much money will be in your retirement account after 50 years? 2. Assuming you made all the monthly payments for 50 years, how much did you pay into your retirement account? 3. Assuming you made all the monthly payments for 50 years, how much interest did you earn over the 50 years?
Assume that you are 20 years old and started saving for retirement on January 1, 2022. You plan
to retire on December 31, 2071, when you are 70 years old. There are 50 years from the time you
started investing (saving) until you retire. You have no previous or other retirement savings
when you start to save. Assume there are 365 days and 52 weeks in each year from 2022 to 2071.
(Ignore leap years). Assume that taxes will not affect any of the amounts or your savings.
You invest $300 at the end of each month into a retirement account paying 7% compounded
monthly from January 1, 2022, until you retire. Show all work and answer the following
questions:
1. Assuming no withdrawals or additional payments were made, how much money will be
in your retirement account after 50 years?
2. Assuming you made all the monthly payments for 50 years, how much did you pay into
your retirement account?
3. Assuming you made all the monthly payments for 50 years, how much interest did you
earn over the 50 years?
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