Quandaries
and Queries 

Level of question  secondary Question: A human resources department wants a report that shows its employees the benefits of saving for retirement. Produce a report that shows 12 predicted retirement account values for each employee  the values if the employee saves 5, 10, or 15% of his or her annual salary for 10, 20, 30, or 40 years. Assume that savings grow at a rate of 8% per year. Not really interested in answers, just the equations to solve the problems. Thanks, Nick 

Hi Nick, I would prepare the report for some salary in the appropriate range, say $50,000, and generate a table with 3 rows (5, 10 and 15%) and 4 (10, 20, 30 and 40 years) columns. In the first row and first column (5% for 10 years) put the amount of savings generated including the 8% interest. 5% of $50,000 is $250 so this person invests $250 each year for 10 years at 8% per year. Thus the return for this person is the sum of 10 quantities
Compute the 10 quantities, add them and record the result in the table. Do this for each of the 12 positions in the table. Penny 

