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Today, Ralph and Sara each have $500,000 in an investment account. No other contributions will be...

  1. Today, Ralph and Sara each have $500,000 in an investment account. No other contributions will be made to their investment accounts. Both have the same goal: They each want their account to reach $1.5 million, at which time each will retire. Ralph has his money invested in risk-free securities with an expected annual return of 4 percent. Sara has her money invested in a stock fund with an expected annual return of 11 percent. How many years after Sara retires will Ralph retire? Pick the closest answer.

    a

    16.24
    b

    19.0
    c

    10.53
    d

    17.48
    e

    28.01

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Expert Solution

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

jeff jeffy answered 3 months ago
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