1. To appreciate the importance of timing in retirement planning, lets consider two investors, A and B, who are both 18 and are planning for their retirement at age 65. Investor A decides to start contributing to his retirement account right away, saving $5000 into his account by year-end. He plans to continue the contribution at $5000/year for 8 years and stop contributing after age 25. Investor B plans to start his first contribution at age 35 and continue contributions for 31 years until he retires. Assume both investors earn 8% from their retirement account. How much is the retirement account balance when they retire? Who has more at retirement at age 65?