P4-22 (similar to) Question Help You are 2020 years old and decide to start savi

ID: 2780670 • Letter: P

Question

P4-22 (similar to)

Question Help

You are

2020

years old and decide to start saving for your retirement. You plan to save

$ 6 comma 000$6,000

at the end of each year (so the first deposit will be one year from now), and will make the last deposit when you retire at age

6767.

Suppose you earn

5 %5%

per year on your retirement savings.

a. How much will you have saved for retirement?

b. How much will you have saved if you wait until age

3131

to start saving (again, with your first deposit at the end of the year)?

a. How much will you have saved for retirement?

The amount that you will have accumulated for retirement is

$nothing.

(Round to the nearest dollar.)

P4-22 (similar to)

Question Help

a) PV = 0

PMT = 6000

rate = 5%

N = 47

use FV funciton in Excel

a) amount saved for retirement = 1,068,716.53

b) now put N = 36

amount saved for retirement = 575,017.94

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