Joe’s dad is only 40, but he is already planning for retirement. If he retires early at age 55, he will receive an annual pension starting at $30,000 that increases at a rate of 3% each year to account for inflation. If he waits until he is 65, his pension will be a percentage of his salary at that time. He figures that his pension will start at about $60,000 and it will have the same 3% annual increase. He wants to know which plan will pay out the largest total by age 80. Show him how to determine the answer to his question. Homework Help ✎
Find the sum of the geometric series defined by t(n) = 30000(1.03)n − 1 from 1 to 25
and the sum of the geometric series defined by t(n) = 60000(1.03)n − 1 from 1 to 15.