Retdrement Worksheet $2$

$\backslash$table$[[$A$)$ CD: Annual Savings and Annual Compounding,$3,600],[$Anaual Savings,$40],[$Years until Retirement,$1],[$Periods$,4\mathrm{.}00\%$

Monthly vs$.$ Yearly Savings

You are able to save $$300$ a month per year$)$ You can invest in a CD account with $4\%$ annual return or an equity fund with an expected annual return of $8\%.$

Assume that the expected annual retum of the equity fund materializes, what will be your savings in $40$ years for both investment opportunities?

a$)$ If you make annual savings of $$3,400$ to the $CD.($assume annual compounding$)$

b$)$ If you make annual savings of $$3,400$ to the equity fund. $($assume annual compounding$)$

c$)$ If you make monthly savings of $$300$ to the $CD.($assume annual compounding$)$

d$)$ If you make monthly savings of $$300$ to the equity. $($assume annual compounding$)$

e$)$ If you make monthly savings of $$300$ to the $CD.($assume monthly compounding$)$

f$)$ If you make monthly savings of $$300$ to the equity. $($assume monthly compounding$)$