Refer to Example 3 and Matched Problem 3. What was the total amount Jane deposited in order to have $143,785.10 at retirement? What was the total amount Mary deposited in order to have the same amount at retirement? Do you think it is advisable to start saving for retirement as early as possible?

Data from Example 3

Jane deposits $2,000 annually into a Roth IRA that earns 6.85% compounded annually. (The interest earned by a Roth IRA is tax free.) Due to a change in employment, these deposits stop after 10 years, but the account continues to earn interest until Jane retires 25 years after the last deposit was made. How much is in the account when Jane retires?

Data from Matched Problem 3

Refer to Example 3. Mary starts a Roth IRA earning the same rate of interest at the time Jane stops making payments into her IRA. How much must Mary deposit each year for the next 25 years in order to have the same amount at retirement as Jane?