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1 Can Smith s balance ever catch up with Bob s ? 2 How long does it take for Smith s balance to catch up
Can Smiths balance ever catch up with Bobs
How long does it take for Smiths balance to catch up with BobsThere are two close friends named Bob & Smith and their ages are the same, years old. Bob has just begun his periodic beginningoftheyear investment of $ every year yielding annually and continues investing for yrs and then somehow decides to stop investing after years. Smith however has not done any investment for the first years. Now, having heard Bob stopped investing, Smith thought it is now his time and turn to start to invest the same periodic beginningoftheyear investment of $ earning the same annually as Bob did. Btw, Bod did not withdraw his money balance from the investment pool so that the balance would grow at the annual continuously. Again, assuming the investment yields annually and therefore the reinvestment rate of return is also for both Bob and Smith:?
What are Bobs balance and Smiths at their retirement age of
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