In: Finance
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 |