Suppose you start saving for retirement when you are 31 years old. You invest $5,200 the first year and increase this amount by 4% each year to match inflation for a total of 25 years. The interest rate is 9% per year. 1. How much will you have in account immediately after making the last deposit at age 55 OA. $1,174,047 B. $71,848 O C. $578,420 OD. $619,553 *** 2. How much will you have, if the interest rate was only 4% per year (instead of 9%)? OA. $125,000 OB. $303,117 OC. $333,230 D. $346,559

Suppose you start saving for retirement when you are 31 years old. You invest $5,200 the first year and increase this amount by 4% each year to match inflation for a total of 25 years. The interest rate is 9% per year. 1. How much will you have in account immediately after making the last deposit at age 55 OA. $1,174,047 B. $71,848 O C. $578,420 OD. $619,553 *** 2. How much will you have, if the interest rate was only 4% per year (instead of 9%)? OA. $125,000 OB. $303,117 OC. $333,230 D. $346,559

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Suppose you start saving for retirement when you are 31 years old. You invest $5,200 the first year and increase this
amount by 4% each year to match inflation for a total of 25 years. The interest rate is 9% per year.
1. How much will you have in account immediately after making the last deposit at age 55
OA. $1,174,047
OB. $71,848
OC. $578,420
O D. $619,553
www
2. How much will you have, if the interest rate was only 4% per year (instead of 9%)?
OA. $125,000
B. $303,117
OC. $333,230
OD. $346,559

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