Assume that you are 23 years old but decide to wait before

Last updated: 4/17/2023

Assume that you are 23 years old but decide to wait before saving for retirement You decide to start saving later when you are 42 years old As a result you start saving on January 1 2042 You plan to retire on December 31 2067 when you are 68 years old There are 26 years from the time you started investing saving until you retire When you start investing in 2042 you have no previous or other retirement savings Assume there are 365 days and 52 weeks in each year from 2042 to 2067 Ignore leap years Assume that taxes will not affect any of the amounts or your savings You invest 125 at the end of each week into a retirement account paying 7 5 compounded weekly for 12 years starting on January 1 2042 After 12 years you do not make any more payments or withdrawals and leave the money in the retirement account until retirement Show all work and answer the following questions 1 Assuming no withdrawals or additional payments were made how much money will be in your retirement account after 12 years 2 After 12 years how many years are left until you retire 3 Assuming you made all the monthly payments for 12 years and left the money in the account without making any additional payments or withdrawals how much money will be in your retirement account when you retire after 26 years 4 Assuming you made all the monthly payments for 12 years and left the money in the account without making any additional payments or withdrawals how much did you pay into your retirement account over the 26 years 5 Assuming you made all the monthly payments for 12 years and left the money in the account without making any additional payments or withdrawals how much interest did you earn over the 26 years Enter the amounts from this strategy in Row 4 of the Comparison Table in Activity 3 of the Project Make sure you enter the amount available at retirement in Row 4