In: Finance
You annually invest $1,500 in an individual retirement account
(IRA) starting at the age of 30 and make the contributions for 15
years. Your twin sister does the same starting at age 45 and makes
the contributions for 15 years. Both of you earn 7 percent annually
on your investment. What amounts will you and your sister have at
age 60? Use Appendix A and Appendix C to answer the question. Round
your answers to the nearest dollar.
Amount on your account: $
Amount on your sister's account: $
Who has the larger amount at age 60?
the larger amount.