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?

Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications
Section: Chapter Questions
Problem 13E
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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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