Problem
Blake is currently planning for his retirement. Blake earns a salary of ammo every month, and starting from the beginning of next month for the next 3t] years, he will deposit 10% of his monthly earnings into a deposit account in Sunlight Bank with an interest rate of 4% compounded monthly.
I. What will he the value of his savings after 30 years?
II. If he waited 5 years later to start saving for his retirement, how much less would he receive in the end of the 30th year?
III. What will he the value of his savings 30 years from now if he started saving today for 3!] years?
IV. Sunlight hank knowing that Blake will deposit money in their bank for the following 3t] years, Sunlight hank have offered a new interest rate structure: the interest rate will he 4% compounded monthly for the first five years and 5.5% compounded monthly thereafter. What will he value of his saving at the end of the 3W1" year?