A 35-year-old person who wants to retire at age 65 starts a yearly retirement contribution in the amount of $5,000. The retirement account is forecasted to average a 6. 5% annual rate of return, yielding a total balance of $431,874. 32 at retirement age. If this person had started with the same yearly contribution at age 20, what would be the difference in the account balances? A spreadsheet was used to calculate the correct answer. Your answer may vary slightly depending on the technology used. $266,275. 76 $215,937. 16 $799,748. 61 $799,874. 61
