A 40-year-old person who wants to retire at age 60 starts a yearly retirement contribution in the amount $6,000. The retirement account is forecasted to average a 5% annual
rate of return, yielding a total balance of $198,395.72 at retirement age.
If this person had started with the same yearly contribution at age 30, what would the difference be in the account balances?
A spreadsheet was used to calculate the correct answer. Your answer may vary slightly depending on the technology used.
O$200,732.63
O$200,237.36
$398,633.09
$389,633.90