Question

shadesha invests $24,000 at age 27. at the age 31 jerome invests $2000 annually until retirement both invest at 7% compounded annually to plan to retire at 65 who has more money for retirement

Answer 1

Applying the compounded interest formula
`FV_(N)=PV(1+r)^(N)` we can write that Shadesha will earn for the retirement
`FV_(38) = 24000 (1+0.07)^(38) = $313,902.513879`
Applying annuity formula, Jerome will earn
`FV_(34)=2000( ((1+0.07)^(34)-1 )/(0.07)) = $256,517. 529629`
Shadesha will have more money