7 . TI Calculator Graded Problem Set

Sheldon has decided to retire once he has $1,500,000 in his retirement account. At the end of each year, he will contribute $8,000 to the account, which is expected to provide an annual return of 8.0%. How many years will it take until he can retire?

39 years

35 years

36 years

38 years

43 years

Suppose Sheldons friend, Ed, has the same retirement plan, saving $8,000 at the end of each year and retiring once he hits $1,500,000. However, Eds account is expected to provide an annual return of 10.7%. How much sooner can Ed retire?

8 years

6 years

4 years

7 years

5 years