Question

Now you will plan for your retirement. To do this we need to first determine a couple of values. a. How much will you invest each year? Even $25 a month is a start ($300 a year), you’ll be surprised at how much it will earn. You can choose a number you think you can afford on your life circumstances or you can dream big. State what you will use for P, r, and n to earn credit.

b. Determine the formula for the accumulated amount that you will have saved for retirement as a function of time and be sure to simplify it as much as possible. You need to be able to show me what you used for r, n, and P so that I can calculate your answers. Plug in those values into the formula and simplify the equation.

c. Graph this function from t = 0 to t = 50. (6 points) Ways to show graphs:  Excel  Hand draw, take a pic with phone and import it into your document as a picture.  Online graphing calculator program (try googling free graphing calculators or use desmos.com)

d. When do you want to retire? Use this to determine how many years you will be investing. (65 years old is a good retirement-age estimate). You need to say how old you are if you are retiring when you are 65 or tell me how long until you retire. State what you will use for t.

e. Determine how much you will have at retirement using the values you decided upon above.

f. How much of that is interest?

g. Now let’s say you wait just 5 years before you start saving for retirement, how much will that cost you in interest? How about 10 years? How about just 1 year?

Answer 1

Thank you so much sir.