A 20 year old student wants to save $5 per day for her retirement. Every day she places $5 in a jar. At the end of the year, she invests the accumulated savings ($1,825) in a low cost brokerage account with an expected annual return of 9%.
1) If she keeps saving in this manner, how much will she have accumulated at age 65, use 9%?
2) If she studied finance, and could achieve a higher rate of 11%, how much would she have accumulated?
3) If she put the money in the brokerage account monthly, (still earning 11%) instead of annually, how much would she have? (HINT: Multiple N by 12, Divide I/Y by 12, and Divide PMT by 12).