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The Commerce Society would like to endow an annual prize of $465.00 to the student who is deemed to have exhibited the most class spirit. The Society is confident that it can invest indefinitely at an interest rate of at least 6.2% a year. How much does the Society need to endow its prize? To endow its prize the Society needs $ (Round to the nearest cent as needed.)
An insurance agent offers services to clients who are concerned about their personal financial planning for retirement. To emphasize the advantages of an early start to investing, she points out that a 25-year-old person who saves $2000 a year for 10 years (and makes no more contributions after age 34) will earn more than by waiting 10 years and then saving $2000 a year from age 35 until retirement at age 65 (a total of 30 contributions). Find the net earnings (compound amount minus total contributions) at age 65 for both situations. Assume an effective annual rate of 4%, and suppose that deposits are made at the beginning of each year. The net earnings at age 65 when investing for 10 years starting at age 25 are s (Round the final answer to the nearest dollar as needed. Round all intermediate values to six decimal places as needed.)