Pension fund offers two types of plans for retirement, which is 25 years away. ...
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Pension fund offers two types of plans for retirement, which is 25 years away.
- Plan 1 requires you to have a deposit of $1,000 each year during the first 10 yearsa total of $10,000, after which Pension fund will keep the sum for the remaining 15 years.
- With Plan 2 you do not need to deposit anything for the first 10 years, but will have to deposit $1,000 for the remaining 15 yearsa total of $15,000.
A. How much you can save under each plan for your retirement date, if the annual return you receive is 6 percent?
B. Which plan would you prefer? Justify your answer
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