Problem:
You are saving for your expected retirement at age 68 -- forty-eight years from today. You plan to invest $2,000 per year, in arrears, for the next forty-eight years and earn 5% per year.
Requirement:
Question 1: How much would you have accumulated after making your 48th and final payment?
Question 2: Because of school loans, furnishing your apartment, saving for a down payment on a condo, etc., you decide to wait twelve years to begin your retirement savings. How much would you have to invest for each of the remaining thirty-six years to accumulate the same amount as in part and if you still earned five percent per annum? Please provide all workings and formulas and also provide step by step solution.