Advantage of Early Investing Go to the Student Edition on this student textbook's OLC. In the navigation bar, select "Chapter 10" in the drop-down box. In the list of resources for Chapter 10, select "Links in Student textbook" and then click on the link named "Early Investing." When the Web page loads, scroll down the screen to find the link named "Advantage of Early Investing." Click on it. The window that opens allows you to enter data to compare three investment plans. For each plan, enter your regular end-of period investment contribution, the frequency of contribution, the age range over which you will contribute, any initial amount already accumulated, and the projected rate of return. Compare the outcomes at age 65 for the following three alternatives:
(i) Plan A: Invest $100/month starting at age 25.
(ii) Plan B: Invest $200/month starting at age 35.
(iii) Plan C: Invest $400/month starting at age 45.
Enter 9% for the growth rate. The calculations will assume annual compounding. After completing the data entry, click on "Submit." A new window opens presenting a table of future values at various ages for each investment plan. Scroll down the window to view an attractive graphic comparing the growth of the three plans.
a) Calculate the total of the nominal contributions under each plan. Compare them using a ratio A:B:C with terms reduced to small integers.
b) Compare the future values at age 65 in a ratio A:B:C. Reduce the ratio so that the smallest term is "1."

Question

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The Answer of Advantage of Early Investing Go to the Student Edition on this student textbook's OLC. In the navigation bar, select "Chapter 10" in the drop-down box. In the list of resources for Chapter 10, select "Links in Student textbook" and then click on the link named "Early Investing." When the Web page loads, scroll down the screen to find the link named "Advantage of Early Investing." Click on it. The window that opens allows you to enter data to compare three investment plans. For each plan, enter your regular end-of period investment contribution, the frequency of contribution, the age range over which you will contribute, any initial amount already accumulated, and the projected rate of return. Compare the outcomes at age 65 for the following three alternatives:
(i) Plan A: Invest $100/month starting at age 25.
(ii) Plan B: Invest $200/month starting at age 35.
(iii) Plan C: Invest $400/month starting at age 45.
Enter 9% for the growth rate. The calculations will assume annual compounding. After completing the data entry, click on "Submit." A new window opens presenting a table of future values at various ages for each investment plan. Scroll down the window to view an attractive graphic comparing the growth of the three plans.
a) Calculate the total of the nominal contributions under each plan. Compare them using a ratio A:B:C with terms reduced to small integers.
b) Compare the future values at age 65 in a ratio A:B:C. Reduce the ratio so that the smallest term is "1."

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