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Question: Rob Jones contacts you for investment advice based on your reputation at GMC. He believes he can ...

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Rob Jones contacts you for investment advice based on your reputation at GMC. He believes he can invest $1000 per year at an annual rate of 6.4% compounded annually. He wants to know the implications of waiting to invest for retirement.

Here are two possible options available to him:

1. Rob is currently 24 years old, and considers investing $1000 each year for 12 years, making his last payment when he is 35. He will continue investing the money until retirement, but will not make any additional payments to the account.
2. Rob considers waiting until he is 36 years old and then investing $1000 each year for 30 years, making his last payment when he is 65.

Questions:

• In each scenario what is the value of the investment between the ages of 24 and 65? Include at least one EXCEL chart that compares the value of each investment over time.
• In each scenario, how much money will he have at age 65?
• What advice will you give him about investing toward retirement?

Answer 1

please upvote the answer