document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1194167>Question 1194167</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Person A plans for retirement by depositing $2 000 per year in a <BR>\n" );
document.write( "superannuation fund each year for 10 years, starting when he turns 25 years <BR>\n" );
document.write( "old, and then leaving the accumulated funds in his superannuation fund until <BR>\n" );
document.write( "he turns 65. Person B wishes to have the same funds available on his <BR>\n" );
document.write( "retirement at age 65 but does not begin to save until he turns 35 when he <BR>\n" );
document.write( "also begins to make annual deposits into a superannuation fund, making the <BR>\n" );
document.write( "first deposit on his 35th birthday and continuing until he retires making the last <BR>\n" );
document.write( "deposit on his 65th birthday. Assuming their funds earn interest at an annual <BR>\n" );
document.write( "rate of 7%, compounded annually, find the annual deposit needed to be made <BR>\n" );
document.write( "by person B. Find how much more interest is earned by person A.  </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #826309 by </B><A HREF=/tutors/aboutme.mpl?userid=Theo><B>Theo(13342)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Theo><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Theo><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=826309\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> person A invests 2000 on his 25th birthday until his 34th birthday.<BR>\n" );
document.write( "on his 34th birthday he will have $27,632.90 in his account.<BR>\n" );
document.write( "he will keep this in his account until his 65th birthday.<BR>\n" );
document.write( "the interest rate he is earning on his investment is 7% per ear.<BR>\n" );
document.write( "he will have $225,073.09 in his account on his 65th birthday.\r<BR>\n" );
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document.write( "person B starts investing each year starting on his 35th birthday and ending on his 65th birthday.<BR>\n" );
document.write( "that makes 31 years of investing.<BR>\n" );
document.write( "he needs to invest $2,205.02 each year for 31 years so that he can have $225,073.09 in his account on his 65th birthday.\r<BR>\n" );
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document.write( "the calculation required to determine the payment person B needs to make each year for 31 years was determined through the use of the ti-ba-ii business analyst calculator.<BR>\n" );
document.write( "inputs were:<BR>\n" );
document.write( "present value = 0<BR>\n" );
document.write( "future value = 225,073.09<BR>\n" );
document.write( "number of years = 31<BR>\n" );
document.write( "interest rate per year = 7%<BR>\n" );
document.write( "payments made at the end of each year.<BR>\n" );
document.write( "output was:<BR>\n" );
document.write( "payment made at the end of each year = 2205.019925.<BR>\n" );
document.write( "this was rounded to 2205.02.\r<BR>\n" );
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document.write( "excel was used to do the year by year calculations required to demonstrate that the future value of the investment for person B was the same as the future value of the investment for person A.\r<BR>\n" );
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document.write( "that is shown below:\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" src = \"http://theo.x10hosting.com/2022/051132.jpg\" >\r<BR>\n" );
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document.write( "let me know if you have any questions.<BR>\n" );
document.write( "theo<BR>\n" );
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