Question

Please show formulas in Excel or work - My formulas keep getting an Error and I don't know what I am doing wrong.

You want to compare two separate retirement savings​ scenarios: (A) and​ (B). In scenario​ (A) you start​ immediately, contribute for a few​ years, but then stop contributing.​ However, you leave the accumulated savings to compound until retirement. In scenario​(B) you start later​ (after the end of savings in scenario​ A) and contribute all the way to retirement. Calculate the accumulated amount of savings at retirement for the two scenarios.

Scenario	Annual Payment	Payment Period	Total Number of Payments	Length of Investment	Interest
A	2000	End of Years 1 to 12	12	30 years	11%
B	2000	End of Years 13 to 30	18	30 years	11%

Answer 1

Scenario A
a) After 12 years
Annual Payment	$           2,000
FV of annuity	=2000(1.11^12-1)/0.11)
Accumulated Savings after 12 years	$         45,426
b) After 30 years
Accumulated Savings after 30 years	=45426 * (1.11)^18
	$      297,247

Scenario B
a) From 13 to 30 years
Annual Payment	$           2,000
FV of annuity	=2000(1.11^18-1)/0.11)
Accumulated Savings after 30 years	$      100,792