A 35-year-old person who wants to retire at age 65 starts a yearly retirement contribution in the amount of $5,000. The retirement account is forecasted to average a 6.5% annual rate of return, yielding a total balance of $431,874.32 at retirement age. If this person had started with the same yearly contribution at age 25, what would be the difference in the account balances?

Answer rating: 100% (QA)

To calculate the difference in the account balances we can compare the future values of the retireme... View the full answer