pter $5$ EOC Problems $-$ Part $2$

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$7.$

$8.$

Allison and Leslie, who are twins, just received $$45,000$ each for their $20$ th birthday. They both have aspirations to become millionaires. Each plans to make a

$9.$ $$5,000$ annual contribution to her "early retirement fund" on her birthday, beginning a year from today. Allison opened an account with the Safety First Bond Fund, a mutual fund that invests in high$-$quality bonds whose investors have earned $8\%$ per year in the past. Leslie invested in the New Issue Bio$-$Tech Fund,

$10.$ which invests in small, newly issued bio$-$tech stocks and whose investors have earned an average of $17\%$ per year in the fund's relatively short history.

$11.$

a$.$ If the two women's funds earn the same returns in the future as in the past, how old will each be when she becomes a millionaire? Do not round

$12.$ intermediate calculations. Round your answers to two decimal places.

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Allison: $$ years

Leslie: $$

b$.$ How large would Allison's annual contributions have to be for her to become a millionaire at the same age as Leslie, assuming their expected returns are realized? Do not round intermediate calculations. Ftund your answer to the nearest cent.

$ $$