suppose you start saving for retirement when you are 26 years old. You invest $5,000 the first year and increase this amount by 3% eac year to match inflation for a total of 20 years. The interest rate is 9% per year. 1. How much will you have in account immediately after making the last deposit at age 45. A. $56,478 OB. $316,525 C. $307,734 D. $617,544 2. How much will you have, if the interest rate was only 3% per year (instead of 9%)? 0100 011

suppose you start saving for retirement when you are 26 years old. You invest $5,000 the first year and increase this amount by 3% eac year to match inflation for a total of 20 years. The interest rate is 9% per year. 1. How much will you have in account immediately after making the last deposit at age 45. A. $56,478 OB. $316,525 C. $307,734 D. $617,544 2. How much will you have, if the interest rate was only 3% per year (instead of 9%)? 0100 011

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter22: Inflation

Section: Chapter Questions

Problem 37P: Rosalie the Retiree knows that when she retires in 16 years, her company will give her a one-time...

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Question

Suppose you start saving for retirement when you are 26 years old. You invest $5,000 the first year and increase this amount by 3% each
year to match inflation for a total of 20 years. The interest rate is 9% per year.
1. How much will you have in account immediately after making the last deposit at age 45.
OA. $56,478
O B. $316,525
O C. $307,734
O D. $617,544
2. How much will you have, if the interest rate was only 3% per year (instead of 9%)?
OA. $180,611
OB. $168,704
C. $97,087
O D. $175,351

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