What is the future value of each of the given options

Reference no: EM131977254

Question: A friend wants to retire in 30 years when he is 65. At age 35, he can invest $300/month that earns 6% each year. But he is thinking of waiting 15 years when he is age 50, and then investing $700/month to catch up, earning the same 6% per year. He feels that by investing over twice as much for half as many years (15 instead of 30 years) he will have more. What is the future value of each of these options at age 65, and under which scenario would he accumulate more money?

Reference no: EM131977254

Questions Cloud

Describe each variable and explain how it is used in system : Determine five (5) of the controller's monitored and controlled variables. Describe each variable and explain how it is used in the system.

What will be the value of the car in given years : Your friend just bought a new car for $26,061. You expect that the value of the car will decline by 8 percent every year.

Investigate a new type of incandescent light bulb : While using a dimmer switch to investigate a new type of incandescent light bulb, you notice that the light changes both its spectral characteristics

Complete the robins federal tax return : Complete the Robins' federal tax return for 2016. Use Form 1040, Schedule A, Schedule B, Schedule D, and Form 8949 to complete this tax return.

What is the future value of each of the given options : A friend wants to retire in 30 years when he is 65. At age 35, he can invest $300/month that earns 6% each year. But he is thinking of waiting 15 years.

Create a page professional memo about your assessment : In this phase, you need to communicate with your troops about the National Infrastructure Protection Plan, through your information in the memo.

Find the current market price of the bonds : Fresh sold an issue of 11-year $1,000 par value bonds to the public. The bonds have a 947 percent coupon rate and pay interest annually.

How would you advise to your friend : Your friend Marvin is excited because he believes he's found an investment bar- gain. A broker at QuickCash Investments has offered him an opportunity.

Make the stockholders equity section of the december : Make the Stockholders' Equity section of the December 31, 2016, balance sheet. "Less" or "Deduct" will automatically appear if it is required.

User Account

All Pages