Answer:
$507.30
Step-by-step explanation:
-Given the monthly deposits are $425 and the interest rate is 3.5% for 30 years.
-The amount of the investment after 30 years is calculated as;
[tex]A=P(1+i/n)^n, n=time \ in \ months\\\\=425(1+0.035/12)^{30\times 12}\\\\=1212.65[/tex]
-Assuming Saul started saving at age 20, his investment term will be 40 yrs.
-His investment amount is thus:
[tex]A=P(1+i/n)^n, n=time \ in \ months\\\\=425(1+0.035/12)^{40\times 12}\\\\=1719.95[/tex]
#We subtract to find how much more he would have if he started saving at 20;
[tex]=A_{20}-A_{30}\\\\=1719.95-1212.65\\\\=507.30[/tex]
Hence, Saul would have $507.30 more had he started saving 10 years earlier.
