A self -employed person deposits $3000 annually in a retirement account (called a Keogh account) that earns 8%.

Required:

Question: How much will be in the account when the individual retires at the age of 65 if the savings program starts when the person is age 40?

Question: How much additional money will be in the account if the saver defers retirements until age 70 and continues the contribution?

Question: How much additional money will be in the account if the saver discontinues the contributions at age 65 but does not retire until age 70?

Note: Be sure to show how you arrived at your answer.