You are 29 years old and decide to start saving for your retirement. You plan to save $5,000 at the end of each year (so the first deposit will be one year from now), and will make the last deposit when you retire at age 70. Suppose you earn 6% per year on your retirement savings.
a) How much will you have saved for retirement?
The amount that you will have saved for retirement is...................... (YOUR ANSWER TO THE SOLUTION SHOULD BE IN NEAREST CENT.)
b) How much will you have saved if you wait until age 31 to start saving (again, with your first deposit at the end of the year)?
The amount that you will have saved for retirement is................... (YOUR ANSWER TO THE SOLUTION SHOULD BE IN NEAREST CENT.)