Part 1 a.  How much will Selma have when she​ retires?   ​$enter your response here   ​(Round to the nearest​ cent.) Part 2 b.  How much will Patty have when she​ retires?

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
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​(Saving for
retirement—future
value of an​ annuity)  Selma and Patty Bouvier are twins and both work at the Springfield DMV. Selma and Patty Bouvier decide to save for​ retirement, which is 35 years away. ​ They'll both receive an annual return of
8
percent on their investment over the next 35 years. Selma invests
$1,800
per year at the end of each year only for the first 10 years of the​ 35-year
period—for
a total of
$18,000
saved. Patty​ doesn't start saving for 10 years and then saves
$1,800
per year at the end of each year for the remaining 25
years—for
a total of
$45,000
saved. How much will each of them have when they​ retire?
 
 
 

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Part 1
a.  How much will Selma have when she​ retires?
 
​$enter your response here  
​(Round to the nearest​ cent.)
Part 2
b.  How much will Patty have when she​ retires?
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