Assuming no withdrawals or additional payments were made, how much money will be in your retirement account after 15 years? After 15 years, how many years are left until you retire? Assuming you made all the monthly payments for 15 years and left the money in the account without making any additional payments or withdrawals, how much money will be in your retirement account after 43 years?
STRATEGY 2: SAVINGS EARLY PLAN
Assume that you are 22 years old and are started saving for retirement on January 1, 2022. You plan to retire on December 31, 2064, when you are 64 years old. There are 43 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 in each year from 2022 to 2064. (Ignore leap years). Assume that taxes will not affect any of the amounts or your savings.
You invest $350 at the end of each month into a retirement account paying 8.75% compounded monthly for 15 years starting on January 1, 2022. After 15 years, you do not make any more payments or withdrawals and leave the money in the retirement account until retirement. Show all work and answer the following questions:
- Assuming no withdrawals or additional payments were made, how much money will be in your retirement account after 15 years?
- After 15 years, how many years are left until you retire?
- Assuming you made all the monthly payments for 15 years and left the money in the account without making any additional payments or withdrawals, how much money will be in your retirement account after 43 years?
- Assuming you made all the monthly payments for 15 years and left the money in the account without making any additional payments or withdrawals, how much did you pay into your retirement account over the 43 years?
- Assuming you made all the monthly payments for 15 years and left the money in the account without making any additional payments or withdrawals, how much interest did you earn over the 43 years?
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