question archive 4)Consider the retirement investment with 5
4)Consider the retirement investment with 5
Subject:MathPrice: Bought3
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%.
