Twins Laura and Lauren Jackson have worked for the same employer for many years. They have always

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Twins Laura and Lauren Jackson have worked for the same employer for many years. They have always diff ered in their investment philosophies toward saving for retirement. Laura invested $5000 for 10 years starting at age 25 and never added any more money to the account.

Lauren invested $5000 per year for 20 years starting at age 35 and never contributed more to her account. Assuming that they both earn an 8 percent annual return, how much more money will Laura have accumulated for retirement than Lauren by the time they reach age 65?

A. $144,000 B. $234,000 C. $494,000 D. $778,000

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Personal Finance

ISBN: 9781439039021

10th Edition

Authors: E Thomas Garman, Raymond E Forgue

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