Erika and Kitty, who are twins, have just received $30,000 each for their 25th Each sister plans to make a $5,000 annual contribution to her retirement fund on her birthday, beginning a year from today. Erika opened an account with a fund that provides a 6% return per year. Kitty invested in fund that provides a 20% return per year. How old will each sister be when she becomes a millionaire? How large should Erika’s annual contributions have to be for her to become a millionaire at the same age as Kitty?
Erika and Kitty, who are twins, have just received $30,000 each for their 25th Each sister plans to make a $5,000 annual contribution to her retirement fund on her birthday, beginning a year from today. Erika opened an account with a fund that provides a 6% return per year. Kitty invested in fund that provides a 20% return per year. How old will each sister be when she becomes a millionaire? How large should Erika’s annual contributions have to be for her to become a millionaire at the same age as Kitty?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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- Erika and Kitty, who are twins, have just received $30,000 each for their 25th
- Each sister plans to make a $5,000 annual contribution to her retirement fund on her birthday, beginning a year from today.
- Erika opened an account with a fund that provides a 6% return per year.
- Kitty invested in fund that provides a 20% return per year.
- How old will each sister be when she becomes a millionaire?
- How large should Erika’s annual contributions have to be for her to become a millionaire at the same age as Kitty?
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