PLEASE HELP!


Question #1: The purpose of this exercise is to demonstrate that it is much more beneficial to begin to invest for
retirement early than it is to wait. We will compare the investments of two people: Alberto and Zach. Alberto
begins to invest immediately after graduation from college, whereas Zach waits 10 years to begin investing. For the
purpose of this demonstration, we will assume that the interest rate remains the same over the entire period of
time.
A. From age 25 to 35, Alberto invests $100 per month in an annuity that pays 12% interest compounded monthly. Determine the
accumulated amount in Alberto's annuity after 10 years.
B. At age 35, Alberto stops making monthly payments into his annuity, but he takes the money he accumulated in his annuity and
invests it in a savings account with an interest rate of 12% compounded monthly. Determine the amount Alberto has in his
savings account 30 years later when he retires at 65.
C. From age 35 to 65, Zach invests $100 per month in an annuity that pays 12% interest compounded monthly. Determine the
accumulated amount in Zach's annuity after 30 years.
D. Determine the total amount Alberto invested during the 10 years from age 25 to 35.
E. Determine the total amount Zach invested during the 30 years from age 35 to 65.
F. Which investor has more money from the investments described here upon retirement? Explain why and give numbers to support
your argument.