Molly Lincoln, a 30-year-old personal loan officer at First National Bank, understands the importance of starting early when it comes to saving for retirement. She has committed $3,000 per year for her retirement fund and assumes that she'll retire at age a. How much will Molly have accumulated when she turns 65 if she invests in equities and earns 10 percent on average? Round your answer to the nearest dollar. $ b. Molly is urging her friend, Isaac Stein, to start his plan right away, too, because he's 35. What would his nest egg amount to if he invested in the same manner as Molly and he, too, retires at age 65? Round your answer to the nearest dollar Nest egg amount at 4% = $ Nest egg amount at 10% = $ Comment on your findings.
Molly Lincoln, a 30-year-old personal loan officer at First National Bank, understands the importance of starting early when it comes to saving for retirement. She has committed $3,000 per year for her retirement fund and assumes that she'll retire at age a. How much will Molly have accumulated when she turns 65 if she invests in equities and earns 10 percent on average? Round your answer to the nearest dollar. $ b. Molly is urging her friend, Isaac Stein, to start his plan right away, too, because he's 35. What would his nest egg amount to if he invested in the same manner as Molly and he, too, retires at age 65? Round your answer to the nearest dollar Nest egg amount at 4% = $ Nest egg amount at 10% = $ Comment on your findings.
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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Question
Qd 92.
Transcribed Image Text:Chapter 14
Financial Planning Exercise 2
Calculating amount available at retirement
Molly Lincoln, a 30-year-old personal loan officer at First National Bank, understands the importance of starting early when it comes to saving for retirement. She has committed $3,000 per year for her retirement fund and assumes that she'll retire at age 65.
a. How much will Molly have accumulated when she turns 65 if she invests in equities and earns 10 percent on average? Round your answer to the nearest dollar.
$
b. Molly is urging her friend, Isaac Stein, to start his plan right away, too, because he's 35. What would his nest egg amount to if he invested in the same manner as Molly and he, too, retires at age 65? Round your answer to the nearest dollar.
Nest egg amount at 4% = $
Nest egg amount at 10% = $
Comment on your findings.
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