Question 15 Susan saved $5000 per year in her retirement account for 10 years (during age...

Question 15

Susan saved $5000 per year in her retirement account for 10 years (during age 25-35) and then quit saving. However, she did not make any withdrawal until she turned 65 (i.e., 30 years after she stopped saving). Her twin sister, Jane did not save anything during the 1st 10 years (during age 25-30) but saved $5,000 per year for 30 years (during age 35-65). What will be the difference in their retirement account balance at age 65, if their investments earned an average return of 7.5% during the entire period?

		$162,450
		$102,289
		$53,568
		$236,265

Expert Solution

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

As nothing was mentioned excel is used.

jeff jeffy answered 1 year ago

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