Question

A 20-year-old student wants to save $5 a day for her retirement.
Every day, she places $5 in a drawer. **At the end of EACH
year**, she invests the accumulated savings in an automated
account with an expected annual return of 9%, paid annually.

A) If she begins saving today; How much money will she have when she is 65? (4 points)

B) If she did not start saving until she was 45 years old, how much would she have at 65? (4 points)

C) How much must the 45-year-old deposit monthly to catch the 20-year old? (4 points)

Answer #1

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