Information for questions 1-2:

Tyler plans to start investing for retirement at age 25. He estimates that he can contribute $10,000 as initial capital, compound annually at 8% for 45 years (till he is 70 to claim maximum social security benefits).

Bryan plans to start investing for retirement at age 35. He estimates that he can contribute $20,000 as initial capital, compound annually at 8% for 35 years (till he is 70 to claim maximum social security benefits)

1. Whats the expected value of Tylers investment when he is 70?

a. $325,921.43

b. $486,000.00

c. $528,902.49

d. $319,204.49

2. Whats the expected value of Bryans investment when he is 70?

a. $756,000.00

b. $295,706.89

c. $578,607.98

d. $159,992.12