Question

Sandler invested an average of $275 per month since age 45 in various securities for his retirement savings. His investments averaged a 2.5% annual rate of return until he retired at age 72. Given the same monthly investment and rate of return, how much more would Sandler have in his retirement savings had he started investing at age 35? Assume monthly compounding.

$89,749.64

$118,387.50

$82,500.00

$73,496.08

Answer 1

P(1+r)
P(1+r)^2
P(1+r)^3
P(1+r)^t

Answer 2

I would try this:

http://openstudy.com/study#/updates/520678cfe4b01dd6868a6419