Asked by
haleigh young
on Dec 14, 2024Verified
Pat and Jaimie are twins. They will both invest $2,500 on their 20th birthday. Pat's money will accumulate at 14% compounded annually for 35 years until their 55th birthday. Being less of a risk taker Jamie will select an investment that will provide a return of only 8.5% compounded annually. If when they reach age 055, Jamie decides to leave the money growing at 8.5% how many more years will it take for Jamie's investment to reach the value that Pat's will be at age 55?
A) 9.3 years
B) 21.2 years
C) 14.3 years
D) 27.4 years
E) 18.4 years
Compounded Annually
Interest calculation method where interest is added to the principal at the end of each 12-month period.
- Assess and compare the effectiveness of different savings and investment strategies over time.
Verified Answer
L?
Learning Objectives
- Assess and compare the effectiveness of different savings and investment strategies over time.