The graduating student wishes to compare difference between investing now and investing later. The financial advisor who spoke to student duggested that Roth IRA would be good investment for him to begin.
If student buys the $1000 IRA when he is 25 years old and expects to earn the average of 4% per year compounded annually over 35 years (until he is 60), how much accumulate in investment?
If student does not put money in IRA until he is 35 years old, how much money will accumulate in account by time he is sixty years old using same return of 4%
How much less will earn as he invested ten years later?