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30. Alison and Lesie, who are twins, just received $20,000 each for their 21th birthday. They both have aspirations to become millionaires. Each plans to

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Alison and Lesie, who are twins, just received $20,000 each for their 21th birthday. They both have aspirations to become millionaires. Each plans to make a $5,000 annual contribution to her early retirement fund on her birthday, beginning a year from today. Allison opened an account with the Safety First Bond Fund, a mutual fund that invests in high-quality bonds whose investors have earned 7% per year in the past. Leslie invested in the New Issue Bio-Tech Fund, which invests in small, newly issued bio-tech stocks and whose investors have eamed an average of 20% per year in the funds relatively short history If the two women's funds earn the same returns in the future as in the past, how old will each be when she becomes a millionaire? Do not round intermediate calculations. Round your answers to two decimal places Allison years years b. How large would Alison's annual contributions have to be for her to become a millionaire at the same age as Leslie, assuming their expected returns are realed? Do not round Intermediate calculations. Round your answer to the nearest cent. $ Is it rational or irrational for Allison to invest in the bond fund rather than in stocks I. High expected returns in the market are almost always accompanied by a lot of risk. We couldn't say whether Allison is rational or irrational, just that she seems to have loss tolerance for rithan Lestie does II. High expected returns in the market are almost always accompanied by less . We couldn't say whether Allison rational or irrational, just that she seems to have more tolerance for risk than Lesbe does m. High expected returns in the market are almost always accompanied by a lot of rok. We couldn't say whether Alison is rational or irrational, just that she seems to have more tolerance for risk than Leslie doel IV. High expected returns in the market are almost always accompanied by less risk. We couldn't say whether Allison is rational or irrational, just that she seems to have less tolerance for risk than Leslie doen V. High expected returns in the market are almost always accompanied by a lot of ruk. We couldn't say whether Allison is rational or irrational, just that she seems to have about the same tolerance for risk than Leslie does System Preferences

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