Question: a) How many years do you need to wait for the money to double if the interest rates offered is 8% compounded annually? b) Jack

a) How many years do you need to wait for the money to double if the interest rates offered is 8% compounded annually? b) Jack plans to retire in 35 years. He can afford to save of $550 a month into an account that pays an interest of 5% compounded monthly. How much money can he save for his retirement? c) You are planning to invest today. You have two options: i) First Bank offers a rate of 7.26 percent compounded monthly. ii) Second Bank offers 7.35 percent compounded quarterly. Which bank will you choose and why? d) If you were to deposit $200,000 in retirement account that would earn interest of 8%, compounded quarterly for 30 years, how much would you have accumulated by the time you retire?

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