1. You annually invest $1,500 in an individual retirement account (IRA) starting at the age of...

1. You annually invest $1,500 in an individual retirement account (IRA) starting at the age of 20 and make the contributions for 15 years. Your twin sister does the same starting at age 35 and makes the contributions for 30 years. Both of you earn 7 percent annually on your investment. What amounts will you and your sister have at age 65? Round your answers to the nearest dollar.
Amount on your account: $
Amount on your sister's account: $

Who has the larger amount at age 65?

Expert Solution

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

Cell reference -

jeff jeffy answered 1 year ago

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