Questions 5,6,7 only Since you have delayed entering the workforce and saving fo

Question

Questions 5,6,7 only Since you have delayed entering the workforce and saving for retirement by one year, calculate the retirement savings Assume you would have saved 10% of your $36,000 salary. You would have deposited it when you were 23and it would have grown at 8% compounded quarterly until you were ready to retire at age 62. (39 years) and growth you are forfeiting by taking another year to complete your degree 4. Using the formula BP( calculate the amount of retirement savings and growth you have forfeited by delaying your graduation and entry into the workforce. Show all your language. p 101. of 30000 300 matuamati in eat and orderly manner. Evlainwhat oursotion means in resl lie 0.08 (quarter) The aifference in total saing ie lbe $ 190SS $ 190SS Consider the cost and repayment of the additional student loan, the forfeited retirement savings and growth, and the forfeited salary. While this may be a crude estimate, what is the financial impact of a 5th year of schooling? (Be careful that you do not count the $3600 initial retirement investment twice.) Show all your mathematics in a neat and orderly manner. Explain what your solution means in real life language. 5. Do any of your findings light a fire under you to finish your degree in 4 years? Explain why or why not. 6.

Explanation / Answer

Ans 5 : Lets suppose 19th to 23rd is actual age of study and after that for 39 year we save .

But if we study for 5 year then .

19th to 24th age we studay and we will save for 38 year .

Loss :

1) So actually we loss for 1 year . and we get compound interset on that amount as well .

so 1 year saving loss : 10% of $36000 = $3600

now total interest on this amount is :

3600(1+8/100)39*4 is our actual loss

2) we need to pay extra amount of interest on our study loan for 1 year .

Ans 6:

As i explain in above question if i complete my study in 4 year then i will get more amount in the end of 62 because i will get interest for 39 year and also i no need to pay loan for 1 more year .

if i study one more year then college fees , room rent and food are extra loss for me and also i not get my salary for that year .

Ans 7 :

if you have any doubt then ping me .

Montly expense Montly doller amount percent of montly salary state income tax $450 15% Saving $300 10% fees loan $750 25% house rent $450 15% food and household expenditure $450 15% car loan $300 10% world tour travelling saving $300 10% Total $3000 100%

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