Twins graduate from college together and start their careers. Twin 1 invests $1500 at the end of each year for 10 years only (until age 31) in an account that earns 6%, compounded annually. Suppose that twin 2 waits until turning 40 to begin investing. How much must twin 2 put aside at the end of each year for the next 25 years in an account that earns 6% compounded annually in order to have the same amount as twin 1 at the end of these 25 years (when they turn 65)? (Round your answer to the nearest cent.)
Twins graduate from college together and start their careers. Twin 1 invests $1500 at the end of each year for 10 years only (until age 31) in an account that earns 6%, compounded annually. Suppose that twin 2 waits until turning 40 to begin investing. How much must twin 2 put aside at the end of each year for the next 25 years in an account that earns 6% compounded annually in order to have the same amount as twin 1 at the end of these 25 years (when they turn 65)? (Round your answer to the nearest cent.)
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 33P
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Twins graduate from college together and start their careers. Twin 1 invests $1500 at the end of each year for 10 years only (until age 31) in an account that earns 6%, compounded annually. Suppose that twin 2 waits until turning 40 to begin investing. How much must twin 2 put aside at the end of each year for the next 25 years in an account that earns 6% compounded annually in order to have the same amount as twin 1 at the end of these 25 years (when they turn 65)? (Round your answer to the nearest cent.)
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