annuties and sinking found,

Question

Evelyn starts a retirement fund 10 years before retirement. She pays $200 per month into the annuity for 10 years. Her total investment is $24,000. Esther starts a retirement fund 20 years before retirement. She pays $100 per month into the annuity for 20 years. Her total investment is $24,000. Lois starts a retirement fund 30 years before retirement. She pays $50 per month into the annuity for 30 years. Her total investment is $18,000. In each case the annuities pay 8% interest compounded monthly. (a) Find the value of each annuity at the time of retirement. (Round your final answer to two decimal places.)

Evelyn	$
Esther	$
Lois	$

(b) What lesson should be learned from the answers in part (a)?

Esther will have the most money for retirement. Start your savings program early for the best return.     There is always enough time to start your savings program. Evelyn will have the most money for retirement.

Answer 1

1. 50$/month, 30 yeers, 8%: hav=75,014.76$

....put up=18,000, hav/putup=4.167

2. 100%/month, 20 yeers, 8%...hav=59,294.72$

....put up=24,000$, hav/putup=2.471

3. 200$/month, 10 yeers, 8%, hav=36,833.14

put up=24,0004, hav/putup=1.536