1 Susie Saver can afford to invest $5,000 in her 401(k) at the beginning of each year for the next ten years. If Susie can earn 6% annually on her money, how much will Susie have in her account at the end of 10 years?
2. Assume because she now has two kids and a mortgage, Susie can’t afford to make any additional deposits to her 401(k), but leaves the amount you calculated in #4 untouched in her 401(k) for the next 30 years. How much will the 401(k) be worth at the end of the 30 years assuming Susie can earn 4% compounded quarterly on her money?