Manya and Sarah are both starting out in their careers. They choose two differentpaths to saving in their 401k accounts for their retirements.Manya is 23 years old and decides to start depositing $400 monthly in her 401k whichwill earn 9.5% APR. Manya will retire at the age of 70.a) How many years will Manya be saving money in her 401k?yearsb) How much will be in Manya's 401k when she retires?c) How much will Manya have deposited herself over her years of working from hersalary?d) How much will Manya have earned in interest over her years of working?Sarah waits to begin depositing money into a 401k (for various reasons that seemedimportant at the time...) until she was 40 years old. She decides to deposit twice asmuch as Manya per month hoping to catch up. Assume that Sarah gets the same 9.5%APR and will retire at the same age of 70.e) How many years will Sarah be saving money in her 401k.yearsf) How much will Sarah be depositing in her account each month?g) How much will be in Sarah's 401k when she retires?h) How much will Sarah have deposited herself over her years working from her salaryi) How much will Sarah have earned in interest over her years of working?$j) How much more will Sarah have deposited than Manya in her account over theyears of working?k) How much money will Sarah have lost in interest by starting late, even though shedeposited more?

Manya:Amount deposited = $400Current age = 23 yearsRetirement age = 70 yearsAPR = 9.5%Sarah:Amount…

Manya and Sarah are both starting out in their careers. They choose two different paths to saving in their 401k accounts for their retirements. Manya is 23 years old and decides to start depositing $400 monthly in her 401k which will earn 9.5% APR. Manya will retire at the age of 70. a) How many years will Manya be saving money in her 401k? years b) How much will be in Manya's 401k when she retires? $

Manya and Sarah are both starting out in their careers. They choose two different paths to saving in their 401k accounts for their retirements. Manya is 23 years old and decides to start depositing $400 monthly in her 401k which will earn 9.5% APR. Manya will retire at the age of 70. a) How many years will Manya be saving money in her 401k? years b) How much will be in Manya's 401k when she retires? $

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter14: Planning For Retirement

Section: Chapter Questions

Problem 2FPE

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