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December 22, 2014

Homework Help: math!

Posted by emma on Saturday, June 8, 2013 at 9:00pm.

3. Suppose that Jill, at age 24, decides to invest $200 monthly into a portfolio that earns 7% compounded monthly and does this until she turns 34. At age 34 she stops contributing to her portfolio, and just lets it gain the same interest (7% compounded monthly) until she retires at age 67.

Now suppose that Mark (the same age as Jill) decides to unwisely procrastinate investing a portion of his income until he turns 34 years old. At this point in his career, he decides to consistently invest $200 monthly (7% compounded monthly until he retires at age 67.

a) How much will both have at age 67 for retirement?
Jill _____________ Mark _____________

b) How much of their final investment is their own money that they contributed (principal)?
Jill _____________ Mark _____________

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