James has decided to start saving for his retirement. Beginning on his twenty-first birthday, James plans to invest $2,000 each birthday into a savings investment earning a 7% compound annual rate of interest. He will continue this savings program for a total of 10 years and then stop making payments. But his savings will continue to compound at 7% for 35 more years, until James retires at age 65. Matthew also plans to invest $2,000 a year, on each birthday, at 7%, and will do so for a total of 35 years. However, he will not begin her contributions until his thirty-first birthday.

1. How much will James and Matthew's savings programs be worth at the retirement age of 65?
2. Who is better off financially at the retirement age?