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Comparing two investors. Assume the investments are made continuously and the return is compounded continuously in the following situations. (10 points) ) Suppose Hali, an
Comparing two investors. Assume the investments are made continuously and the return is compounded continuously in the following situations. (10 points) ) Suppose Hali, an 18-year-old decides to invest $2000 per year for ten years into an account that averages an annual return of 12%. After the tenth year she then lets the money stay in the account, but makes no further payments to the account, until she is 70 (retirement age). Ten years before retirement this investor will move the money to a more secure investment that has an average annual return of 6%. How much money will she have in the account to use in her retirement years? How much total money did she invest? ) Suppose David, a second 18-year-old decides to begin investing at the age of 28. He invests $2000 per year into an account that averages an annual return of 12% until he is 60, then he will change to a more secure investment that has an average annual return of 6% until he is 70 (retirement age), still making the annual investment of $2000. How much money will he have in the account to use in his retirement years? How much total money did he invest? Comparing two investors. Assume the investments are made continuously and the return is compounded continuously in the following situations. (10 points) Suppose Hali, an 18-year-old decides to invest $2000 per year for ten years into an account that averages an annual return of 12%. After the tenth year she then lets the money stay in the account, but makes no further payments to the account, until she is 70 (retirement age). Ten years before retirement this investor will move the money to a more secure investment that has an average annual return of 6%. How much money will she have in the account to use in her retirement years? How much total money did she invest? Suppose David, a second 18-year-old decides to begin investing at the age of 28. He invests $2000 per year into an account that averages an annual return of 12% until he is 60, then he will change to a more secure investment that has an average annual return of 6% until he is 70 (retirement age), still making the annual investment of $2000. How much money will he have in the account to use in his retirement years? How much total money did he invest
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