Question: 1. A full-time worker aged 20 invests $250 a month in a fund which has an average yearly return of 8.4% compounded monthly. (a) The

1. A full-time worker aged 20 invests $250 a month in a fund which has an average yearly return of 8.4% compounded monthly.

(a) The worker wants to estimate what they will have for retirement when they are 60 years old if the rate stays constant. Assume monthly compounding.

(b) If the worker makes no further deposits and makes no withdrawals after age 60, how much will they have for retirement at age 74?

ANSWER: (a) How much money will the worker have in their fund when they are 60 years old?

The worker will have $____ in their fund when they are 60 years old (Round to the nearest cent)

(b) If the worker makes no further deposits and makes no withdrawals after 60, how much will they have for retirement at age 74?

THe worker will have $__ in their fund. (Round to the nearest cent)

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