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In: Finance

In the Dave Ramsey: Wealth Building and Compound Interest video, approximately how much less did Arthur...

In the Dave Ramsey: Wealth Building and Compound Interest video, approximately how much less did Arthur have at age 65 by beginning investing just 8 years later than his brother Ben?

Solutions

Expert Solution

By beginning investing just 8 years later than his brother Ben, Arthur have at age 65 an amount less by

= $ 2,288,997- $ 1,532,183

= $  756,814

Recall the video. You will be able to see the cash flows.

When we plot the cash flows with time and calculate the NPV for both the brothers, we get the following:


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