Selma and Patti Bouvier are twins, and both work at the Woodbridge DMV. They decide to save for retirement, which is 35 years away. They'll both receive an 8 percent annual return on their investment over the next 35 years. Selma 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. Patti doesn't start 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

Respuesta :

Answer:

Selma would have saved $31,291, while Patti would have saved $340,913.

Explanation:

See the attached for the future value (FV) calculation.

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