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Suppose you start saving for retirement when you are 40 years old. You invest $4,000 the first year and increase this amount by 3% each year to match inflation. How much money will you have saved after 30 years if the interest rate earned on the retirement account is 9% per year? (a) You will have saved $ (Round to the nearest dollar.) (b) On the other hand, you will have saved $☐ if the rate of increase of the investment deposits was 9% instead of the original 3%.

Suppose you start saving for retirement when you are 40 years old. You invest $4,000 the first year and increase this amount by 3% each year to match inflation. How much money will you have saved after 30 years if the interest rate earned on the retirement account is 9% per year? (a) You will have saved $ (Round to the nearest dollar.) (b) On the other hand, you will have saved $☐ if the rate of increase of the investment deposits was 9% instead of the original 3%.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Suppose you start saving for retirement when you are 40 years old. You invest $4,000 the first year and increase this amount by 3% each year to match inflation. How much money will you have saved after 30 years if the interest rate earned on the retirement account is 9% per year? (a) You will have saved $ (Round to the nearest dollar.) (b) On the other hand, you will have saved $☐ if the rate of increase of the investment deposits was 9% instead of the original 3%.
Transcribed Image Text:Suppose you start saving for retirement when you are 40 years old. You invest $4,000 the first year and increase this amount by 3% each year to match inflation. How much money will you have saved after 30 years if the interest rate earned on the retirement account is 9% per year? (a) You will have saved $ (Round to the nearest dollar.) (b) On the other hand, you will have saved $☐ if the rate of increase of the investment deposits was 9% instead of the original 3%.
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