• It is important to start saving early for retirement.
  • Bob understands that. He starts to save for his retirement at the age of 20. He saves $10000 a year. At an annual rate of return of 7% a year, how much would he have accumulated by age 50.
  • At the age of 40, assuming that Bob gets a promotion and increases his contribution to 15000 a year, how much would he have accumulated by 50.
  • Sandy starts saving later at age 25 and starts saving $11000 a year. However, her parents helped by giving her $50000. How much would she have accumulated by age 50?
  • Did she save more than Bob in scenario a by age 50?