Mary, age 27, annually invests $1,000 in an IRA starting this year through the year of her 35th birthday, and then never makes another contribution. Sara, age 36, annually invests $1,000 in an IRA through the year of her 65th birthday. If both Mary and Sara can earn 8% on their investments, who will have more in her IRA account when she retires at the end of her 65th year AND approximately how much more will she have in her account?

Answer rating: 100% (QA)

Mary invests 1000 per year from age 27 to 35 so for 9 years Sara invests 1000 per year from age 36 to 65 so for 30 years Both earn 8 annual return on ... View the full answer