Assuming no withdrawals or additional payments were made, how much money will be in your retirement account after 12 years? After 12 years, how many years are left until you retire? Assuming you made all the weekly payments for 12 years and left the money in the account without making any additional payments or withdrawals, how much money will be in your retirement account after 47 years?
Assume that you are 22 years old and are started saving for retirement on January 1, 2022. You plan to retire on December 31, 2068, when you are 68 years old. There are 47 years from the time you started investing (saving) until you retire. You have no previous or other retirement savings when you start to save. Assume there are 365 days and 52 weeks in each year from 2022 to 2068. (Ignore leap years). Assume that taxes will not affect any of the amounts or your savings.
You invest $50 at the end of each week into a retirement account paying 8.5% compounded weekly for 12 years starting on January 1, 2022. After 12 years, you do not make any more payments or withdrawals and leave the money in the retirement account until retirement. Show all work and answer the following questions:
- Assuming no withdrawals or additional payments were made, how much money will be in your retirement account after 12 years?
- After 12 years, how many years are left until you retire?
- Assuming you made all the weekly payments for 12 years and left the money in the account without making any additional payments or withdrawals, how much money will be in your retirement account after 47 years?
- Assuming you made all the weekly payments for 12 years and left the money in the account without making any additional payments or withdrawals, how much did you pay into your retirement account over the 47 years?
- Assuming you made all the weekly payments for 12 years and left the money in the account without making any additional payments or withdrawals, how much interest did you earn over the 47 years?
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- Assuming you made all the weekly payments for 12 years and left the money in the account without making any additional payments or withdrawals, how much did you pay into your retirement account over the 47 years?
- Assuming you made all the weekly payments for 12 years and left the money in the account without making any additional payments or withdrawals, how much interest did you earn over the 47 years?
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