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Fred and Mary each invest $ 5,000 today. Fred is more conservative and invests his money in an account that is expected to earn 3%
Fred and Mary each invest $ 5,000 today. Fred is more conservative and invests his money in an account that is expected to earn 3% a year. Mary is an aggressive investor and invests her money in an account that is expected to earn 15% a year. Assume Fred and Mary each earns their expected rates of return. After 120 months, how much more money will Mary have than Fred?
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