A year ago you deposited 40000 into a retirement savings


A year ago you deposited $40,000 into a retirement savings account at a fixed rate of 5.5 percent. Today you could earn a fixed rate of 6.5 percent on a similar type account. However your rate is fixed and cannot be adjusted. How much less could you have deposited last year if you could have earned a fixed rate of 6.5 percent and still have the same amount as your currently will when you retire 38 years from today?

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Financial Management: A year ago you deposited 40000 into a retirement savings
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