1. Invest Now or Later? Twins Barbara and Mary are both age 27. Beginning at age 27, Barbara invests $2000 per year for 10 years and then never sets aside another penny. Mary waits 10 years and then invests $2000 per year for the next 30 years. Assuming they both earn 7 percent, how much will each twin have at age 67?

(Hint: Use Appendixes A.1 and A.3 or visit the Garman/Forgue companion website.)