Assuming you are considering investing in a defined contribution pension plan. You do not know how many you need to invest into the plan. Please calculate the value of the plan when you retire at 70-years-old. the interest rate or investment return is 10%.   You invest 23,500 each year from 20-years-old.   You invest 23,500 each year from 25-years-old.   You invest 5,000 each year from 20-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
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Assuming you are considering investing in a defined contribution pension plan. You do not know how many you need to invest into the plan. Please calculate the value of the plan when you retire at 70-years-old. the interest rate or investment return is 10%.

 

You invest 23,500 each year from 20-years-old.

 

You invest 23,500 each year from 25-years-old.

 

You invest 5,000 each year from 20-years-old.

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