Question 1 Part 2

If an individual do not put the $2000 in an IRA until 35 years old. How much will he have accumulated at age 60 using 6 % How much less will he earned since he only invested 10 year later instead of when he was 25 years old. How much less because he started the investment 10 years later.

Initial investment (PV)_$2000.00_________________

Quoted Rate_______6%____________

Compounding frequency_________4___________(choose one)*

Number of compounding (m)____________________

Quoted rate divided by m= rate_____________________

Number of years __25 years____________________

NPER (Num. of Years*m)________________________

Ending amount (FV)_________________________________

Difference in amount earned______________________________

FV part1 minus FV part 2

* From list starting with (initial investment). For quarterly, type 4, for semiannual, type 2, for annually, type 12, for daily, type 365

NPER (Excel function/ getting the number of periods for an investment.

You are a mathematician do the reasoning