Questions: MATH201 - It's All About Part III Review the two tables below which calculate the amount of money you and Benjamin will each have at the age of 65 if you stick to your investment strategies. Note: The two tables below have populated automatically based on the annual amount of money invested (green box), an interest rate of 11% per year, compounded semi-annually until age 65.

MATH201 - It's All About Part III Review the two tables below which calculate the amount of money you and Benjamin will each have at the age of 65 if you stick to your investment strategies. Note: The two tables below have populated automatically based on the annual amount of money invested (green box), an interest rate of 11% per year, compounded semi-annually until age 65.
Transcript text: MATH201 - It's All About Part III Review the two tables below which calculate the amount of money you and Benjamin will each have at the age of 65 if you stick to your investment strategies. Note: The two tables below have populated automatically based on the annual amount of money invested (green box), an interest rate of $11 \%$ per year, compounded semi-annually until age 65.
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Solution

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Solution Steps

Step 1: Identify the Problem

The problem asks to review the provided tables calculating the future value of investments for Benjamin and You based on different investment strategies.

Step 2: Analyze Benjamin's Investment Strategy

Benjamin invests $1000 annually from age 22 to age 29. The table then calculates the compounded value of these investments at an 11% interest rate, compounded semi-annually, until age 65.

Step 3: Analyze Your Investment Strategy

You begin investing $1000 annually later, starting from age 30 to age 44. The table calculates the future value of your investments using the same 11% interest rate compounded semi-annually until age 65.

Final Answer:

The provided tables demonstrate the power of compounding and the impact of starting investments early. While you invest for a longer period (15 years vs. Benjamin's 8 years), Benjamin's earlier start allows his investments more time to grow, potentially resulting in a larger total value at age 65. The exact values at age 65 are given at the bottom of the respective columns, showing the final compounded value for each person.

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