Amanda, David and Simon were comparing how much money they had in their retirement accounts now that all three of them just turned 65 (Assume they are exactly the same age). All of them had invested a different amount into their respective accounts.

i. Amanda had invested $5,000 every year for 10 years starting when she turned 25. In total, she had invested $50,000. 

ii. David had invested $5,000 every year for 30 years starting when he turned 35. In total, he had invested $150,000. 

iii. Simon had invested $5,000 every year for 40 years starting when he turned 25. In total, he had invested $200,000. 

Assuming the account earns 7% per year, plot on one chart the amount of money that all three of them had from when they turned 25 to when they turned 65. Who had the most money and who had the least in the end?

Answer rating: 100% (QA)

To calculate the amount of money each person has in their retirement account at age 65 we can use t... View the full answer