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Homework answers / question archive / You want to compare two separate retirement savings scenarios: (A) and (B)
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 Payment Period Annual Total Number of Length of Interest P: Payment Payments Investment Rate
(A) $9.000 End of years 1 to 9 9 27 years 7%
(B) $9.000 End of years 10 to 27 18 27 years 7%
