Consider Amanda and Zelda. They will both save $6,000 per year until they retire at age 70. Amanda and Zelda, however, will start saving at different ages. Amanda will start saving when she is 30 years old. Zelda will start saving when she is 50 years old. Assuming the interest rate each year is 8%, how much money will the first year of savings be when they retire? Round your answers to two decimal places.

Amanda: $_______

Zelda: $_______

Part 2 (1 point)

Since Amanda started saving much earlier than Zelda, Amanda has _[higher, lower, or equal (choose one)]_ higher time preferences than Zelda.

Answer rating: 100% (QA)

Part one lets first calculate the amount both Amanda and Zelda will have save... View the full answer