You are considering two different strategies for a savings account that you intend to close when you
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Question:
You are considering two different strategies for a savings account that you intend to close when you retire exactly 29 years from today.For Strategy 1, deposit $1,750perquarterfor 8 years (first deposit today; last one exactly 8 years from today); no new deposits will be made after the end of the deposit period, but interest continues to accrue until the account is closed.For Strategy 2, you'll make your firstquarterlydeposit exactly 8 years from today, eachquarterlydeposit also equals $1,750, and you'll continue makingquarterlydeposits for 21 years, so that you make the final deposit exactly 29 years from today when you close the account.The savings rate always is 5.5% compoundedquarterly.
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