Twins 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. One twin invests 2,000 per year at the end of each year only for the first 10 years of the 35-year period-for a total of 20,000 saved. The other twin doesn't srart saving for 10 years and then saves 2,000 per year at the end of each year for the remaining 25 years-for a total of 50,000 saved. How much will each of them have when they retire?
Twins 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. One twin invests 2,000 per year at the end of each year only for the first 10 years of the 35-year period-for a total of 20,000 saved. The other twin doesn't srart saving for 10 years and then saves 2,000 per year at the end of each year for the remaining 25 years-for a total of 50,000 saved. How much will each of them have when they retire?
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 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. One twin invests 2,000 per year at the end of each year only for the first 10 years of the 35-year period-for a total of 20,000 saved. The other twin doesn't srart saving for 10 years and then saves 2,000 per year at the end of each year for the remaining 25 years-for a total of 50,000 saved. How much will each of them have when they retire?
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