Selma and Patty Bouvier are twins and both work at the Springfield DMV. Selma and Patty Bouvier decide to save for reti
Posted: Mon May 02, 2022 9:26 am
Selma and Patty Bouvier are twins and both work at the
Springfield DMV. Selma and Patty Bouvier decide to save
for retirement, which is 35 years away. They'll both
receive an annual return of
8
percent on their investment over the next 35 years. Selma
invests
$2,200
per year at the end of each year only for the first 10 years of
the 35-year
period—for
a total of
$22,000
saved. Patty doesn't start saving for 10 years and then
saves
$2,200
per year at the end of each year for the remaining 25
years—for
a total of
$55,000
saved. How much will each of them have when
they retire?
Springfield DMV. Selma and Patty Bouvier decide to save
for retirement, which is 35 years away. They'll both
receive an annual return of
8
percent on their investment over the next 35 years. Selma
invests
$2,200
per year at the end of each year only for the first 10 years of
the 35-year
period—for
a total of
$22,000
saved. Patty doesn't start saving for 10 years and then
saves
$2,200
per year at the end of each year for the remaining 25
years—for
a total of
$55,000
saved. How much will each of them have when
they retire?