You annually invest $1,500 in an IRA starting at the age of 20 and make the contributions for 10 years. Your twin sister does the same starting at age 30 and makes the contributions for 30 years. Both of you earn 7 percent annually on your investment. Who has the larger amount at age 60?

Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter27: Time Value Of Money (compound)
Section: Chapter Questions
Problem 6E
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You annually invest $1,500 in an IRA starting at the age of 20 and make the contributions for 10 years. Your twin sister does the same starting at age 30 and makes the contributions for 30 years. Both of you earn 7 percent annually on your investment. Who has the larger amount at age 60?

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