Question
8. If you start investing $2,000 each month at age 35 and your friend, who is the same age as you, started investing $2,000 each
8. If you start investing $2,000 each month at age 35 and your friend, who is the same age as you, started investing $2,000 each month at age 30, which of the following would be applicable when you both turn 65 (assuming you each earned on average 7% per annum)? A. Both of you would have the same final amount. B. You would have saved more than your friend. C. Your friend would have saved more than you. D. If you had invested in a conservative fund with a return of 5% per annum you would have saved more than your friend who was invested in a growth fund with a return of 7% per annum. E. None of the above.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started