In: Finance
Tabitha saved $5,000 a year for ten years ($50,000) beginning at age 22 Tonya saved $10,000 a year for ten years ($100,000) beginning at age 40 Both made the same investments and realized a compound return of 6% annually Who has more money at age 67?
Tabitha:
PMT | $ 5,000.00 |
r | 6.00% |
n | 10 |
T | 1 |
PV | $ 65,903.97 |
r | 6.00% |
n | 35 |
frequency | 1 |
Tonya:
PMT | $ 10,000.00 |
r | 6.00% |
n | 10 |
T | 1 |
PV | $ 1,31,807.95 |
r | 6.00% |
n | 17 |
frequency | 1 |
So Tabitha will have higher amount by the age of 67