Consider that you will graduate in the spring and you will start your job September 1 2013. If you were going to start putting $100 into a bank account each
month until you retire 43 years later (around age 65) at a very good interest rate of 5% p.a. compounded monthly how purchasing power will you have at
retirement? If you were to earn 2.4% how much purchasing power would you have at retirement? And if you were to earn current interest rates of 0.1% how much
purchasing power would you have at retirement? Consider the inflation rate to be close to recent historical average of 2.4%.