Answer to Question #140357 in Finance for Jenelle Daniel

Question #140357
Consider Donald and Joe who are both 30- years of age and recently graduated with a degree in Finance. Both Donald and Joe plan to retire at age 67, and the retirement plan pays a 12 percent per annum return and is also compounded monthly. Donald plans to invest $1,000 per month beginning next month into his retirement account, while Joe shall invest $2,000 per month. Joe however does not plan to begin investing until 10 years after Donald begins to invest. How much will each of the newly grads have at retirement?
1
Expert's answer
2020-11-02T07:03:04-0500


For Donald


P= $1000

r= 12/12= 1%

n=  444


Therefore for Donald Future Value= $8,192,586


For Joe


P= $2000

r= 12/12= 1%

n= 


Therefore for Joe Future Value= $4,825,220


Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be the first!

Leave a comment

Ask Your question

LATEST TUTORIALS
New on Blog
APPROVED BY CLIENTS