16. Problem 5.30 (Reaching a Financial Goal) Alison and Leslie, who are twins, Just received \$15,000 each for their 30th birthday. They both have aspirations to become millionaires. Each plans to make a $55,000 annuat contribution to her "early retirement fund" on ber birthday, beginining a year from today. Alison opened an account with the Sofety first Bond fund, a mutual fund that invests in high-quality bonds whose irvestors have earned 8% per yoar in the past, Lesfe Invested in the New Issue Bio-tech Fund, which invests in small, newly issued bio-tech stocks and whose investors have earned an average of 20% per year in the fund's relatively short history. a. If the two women's funds eam the same retums in the future as in the past, how old will each be when she becomes a milionaire? Do not round intermediate caicilations. Round your answers to two decimal places. Alison:Leslie:yearsyears b. How targe nould Alison's annual contributions have to be for her to become a millionaire at the same age as Lestle, assuming their erpected rehurns are realized? Do not round intermodiate calculations. Round your answer to the hearest cent. c. Is it rational or irrations for Alison to invest in the bond fund rather than in stockiy 1. High expected retums in the market are aimost always accompanied by a lot of nisk We couddn't say whether Aliton is rational or imational, juat that she seems to have less tolerance for risk than cesie does. II. High expected retums in the mackat are aimose always accompanied by less nsk. Wh couldht aay whether Alson is ratianal or irrational, just that she seems to have more tolerance for risk than Leste does. ii. High expected returns in the market are gimest always accompanied by a ot of rak We coulant say whether Alibon is rabional or inational, suit that she ieems to have inore tolerarice for risk than Lesen does. W. Hogh expected retums in the market are almast aleays actomoanses ty less riek. We couldn't say whather Alison is rationat or iriationas, Judt that ane seems to have iess tolerance for riak than Levie does. to have about the same toserance for hisk than teslie daet