Selma and Patty Bouvier are twins and both work at the Springfield DMV. Selma and Patty Bouvier

Question:

Selma and Patty Bouvier are twins and both work at the Springfield DMV. Selma and Patty Bouvier decide to save for retirement, which is 35 years away. They’ll both receive an 8 per-cent annual return on their investment over the next 35 years. Selma invests $ 2,000 per year at the end of each year only for the first 10 years of the 35- year period— for a total of $ 20,000 saved. Patty doesn’t start saving for 10 years and then saves $ 2,000 per year at the end of each year for the remaining 25 years— for a total of $ 50,000 saved. How much will each of them have when they retire?
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Foundations of Finance The Logic and Practice of Financial Management

ISBN: 978-0132994873

8th edition

Authors: Arthur J. Keown, John D. Martin, J. William Petty

Question Posted: