Question
Erica and Kitty are twins. Each is turning 25 today and receives a $40,000 gift which they each choose to immediately invest. Additionally, each plans
Erica and Kitty are twins. Each is turning 25 today and receives a $40,000 gift which they each choose to immediately invest. Additionally, each plans to make annual contributions of $6,000 per year, every year, starting one year from today. If Erica's account will earn 7% (APR) per year, compounded annually, and Kitty's account will earn 10% (APR) per year, compounded annually, then HOW MUCH FASTER will Kitty become a millionaire than Erica? (Compare the two amounts of time needed to reach one million dollars. Use three decimal places for "n." Then subtract and round your answer to two decimal places, in terms of years). Group of answer choices 5.33 years 7.10 years 8.93 years None of the other answer options are correct.
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