Business, 24.10.2020 05:40 angelrenee2000
Chad Zutter, a 25 years old university graduate, and he wishes to retire at
age of 65. To cover his cost of living after retiring, he deposits $2,000 each
year into retirement fund. He will earn 10 percent over the fund until he
retires. *
I
(a) If Chad makes an annual end of year payment, how much will he has when he retired. (b) If Chad decided to
start saving beginning of the year, calculate the amount he will has when he retired. (c) If Chad start investing at
the age 30 years old, how much will he has when he retired with annual end of the year payment. (d) Based on
the answer (C) if Chad decided to save beginning of the year, calculate the amount he will has when he retired.
(e) Using the findings in (a), (b), (c) and (d), recommend an option to Chad on his savings in retirement fund and
do justify your answer.
Answers: 2
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Chad Zutter, a 25 years old university graduate, and he wishes to retire at
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