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ns graduate from college together and t their careers. Twin 1 invests $1500 at end of each year for 10 years only (unt 34) in an account that earns 7%, mpounded annually. Suppose that twin S until turning 4 0 to begin ipvesting

ns graduate from college together and t their careers. Twin 1 invests $1500 at end of each year for 10 years only (unt 34) in an account that earns 7%, mpounded annually. Suppose that twin S until turning 4 0 to begin ipvesting

Essentials Of Investments
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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Twins graduate from college together and start their careers. Twin 1 invests $1500 at the end of each year for 10 years only (until age 34) in an account that earns 7%, compounded annually. Suppose that twin 2 waits until turning 40 to begin investing. How much must twin 2 put aside at the end of each year for the next 25 years in an account that earns 7% compounded annually in order to have the same amount as twin 1 at the end of these 25 years (when they turn 65)? (Round your answer to the nearest cent.)
Transcribed Image Text:Twins graduate from college together and start their careers. Twin 1 invests $1500 at the end of each year for 10 years only (until age 34) in an account that earns 7%, compounded annually. Suppose that twin 2 waits until turning 40 to begin investing. How much must twin 2 put aside at the end of each year for the next 25 years in an account that earns 7% compounded annually in order to have the same amount as twin 1 at the end of these 25 years (when they turn 65)? (Round your answer to the nearest cent.)
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