question archive 4)Consider the retirement investment with 5

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4)Consider the retirement investment with 5.99% APR for 30 years using 6.5% of your

monthly income. Which scenario will give you the best value for retirement? For each

scenario, find the relative change from the original retirement amount to the doubled

amount.

• If you were to double the APR (from 5.99% to 11.98%), how much would you have in

your retirement account? Write a meaningful sentence about the relative change from

the original to the new value.

• If you were to double the contribution into the account (from 6.5% to 13% of monthly

salary), how much would you have in your retirement? Write a meaningful sentence

about the relative change from the original to the new value.

• If you were to double the time that you are investing (from 30 years to 60 years), how

much would you have in your retirement account? Write a meaningful sentence about

the relative change from the original to the new value.

5. Assume 6.5% is saved for retirement with 5.99% APR (as in previous problems).

• How much money would you need to save each month to reach one million dollars in

30 years?

• Is this a feasible monthly payment for the job you have chosen?

• Use an absolute or relative change sentence comparing the money needed to reach

one million dollars and the money you already are saving with 6.5%.