Question

Susan and Kim are twin sisters. Susan starts investing $100 a month at age 25 and invests for 10 years 35 at 5% compounded monthly. Susan stops investing at age 35, and does not contribute any money for the next 30 years. Kim starts investing at age 30, $150 a month at 5% for 30 years. Now at age 65.

Required:
a. How much money has Susan deposited?
b. How much money has Kim deposited?
c. Who has saved the most money? be sure to give the totals for both sisters

Answer 1

A. $12,000

B. $54,000

C. Kim

Step-by-step explanation:

a) Calculation to determine How much money has Susan deposited

Deposited amount=$100*120

Deposited amount=$12,000

Therefore The amount that Susan has deposited is $12,000

b) Calculation to determine How much money has Kim deposited

Deposited Amount=$150*360

Deposited Amount=$54,000

Therefore The amount that Kim has deposited is $12,000

c)Based on the above calculation the person Who has saved the most money will be Kim

because Kim deposited more which is the amount of $54,000 and as well saved more which is the amount of $125,000