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Problem 7-04

You annually invest $1,000 in an individual retirement account (IRA) starting at the age of 30 and make the contributions for 15 years. Your twin sister does the same starting at age 45 and makes the contributions for 15 years. Both of you earn 7 percent annually on your investment. What amounts will you and your sister have at age 60? Use Appendix A and Appendix C to answer the question. Round your answers to the nearest dollar. Amount on your account: $ Amount on your sister's account: $

Who has the larger amount at age 60? -Select- (you or your sister) has the larger amount.