Invest Now or Later?

Twins Natalie and Kaitlyn are both age 25. They both live in Warren, Ohio. Beginning at age 25, Natalie invests $2,000 per year for ten years and then never sets aside another penny. Kaitlyn waits ten years and then invests $2,000 per year for the next 30 years. Assume they both earn 7 percent. Round your answers to the nearest dollar. (Hint: Use Appendix A-1 and Appendix A-3 or visit the Garman/Forgue companion website.) Round Future Value of a series of Equal Amounts and Future Value of a Single Amount in intermediate calculations to four decimal places.

How much will Natalie have at age 65?

$

How much will Kaitlyn have at age 65?

$