How much would Barry (from Problem 1) have if he could earn a 10 percent return, compounded monthly, on his investment beginning at age 35?
In problem (1) Barry has just become eligible for his employer sponsored retirement plan. Barry is 35 years old and plans to retire at age 65. He calculates that he can contribute $300 per month at the end of the month to the plan. Barry’s employer will match this amount. If Barry can earn an 8 percent return, compounded monthly, on his investment, how much will he have at retirement?