John has decided to start saving for his retirement. Beginning on his twenty-first birthday, John plans to invest $2,000 each birthday into a savings investment earning a 7 percent compound annual rate of interest. He will continue this savings program for a total of 10 years and then stop making payments. But his savings will continue to compound at 7 percent for 35 more years until John retires at age 65. How much will John have at age 35?
John has decided to start saving for his retirement. Beginning on his twenty-first birthday, John plans to invest $2,000 each birthday into a savings investment earning a 7 percent compound annual rate of interest. He will continue this savings program for a total of 10 years and then stop making payments. But his savings will continue to compound at 7 percent for 35 more years until John retires at age 65. How much will John have at age 35?
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 34P
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