Answer:
Find below correct question:
When she was 20, liz started saving $6,000 a year for retirement. her goal is to reach & 100,00 in savings by the time she’s 30. her account earns 8% interest per year, compounded annually. liz (will/ won’t) have saved $100,000 by age 30. she’ll (exceed/ fall short of) her goal by about ($10,081/ $13,081/ $14,011)
liz won’t have saved $100,000 by age 30. she’ll fall short of her goal by about $13,081
Step-by-step explanation:
First and foremost we need to know the worth of Liz's retirement savings when she is 30 using excel fv formula as follows:
=fv(rate,nper,-pmt,pv)
rate is the interest earned per year which is 8%
nper is the duration of savings which is 10 years
pmt is the amount of yearly savings which is $6,000
pv is the present worth of total savings which is not known
=fv(8%,10,-6000,0)=$86,919.37
Hence,Liz would be not be able to reach $100,000 at age 30.
Shortfall=$100,000-$86,919.37 =$ 13,080.63
