Jane and Joan are twins. They both went to work at age 25 with similar jobs, and at the end of each year, they receive bonuses of $2000.

Though they are similar in a number of ways, they are also different. Jane is more inclined to save money whereas Joan is a spender.

Janes plan is to invest her $2000 bonuses each year for the first 10 years of her career in a retirement savings program until she turns 35. After those 10 years, she plans to spend her bonuses for the remaining portion of her career until she retires at age 65.

Joan is convinced she should take the opportunity to enjoy life while she is young and worry about saving money later. Joan plans to spend her first ten $2000 bonuses until she turns 35, and then she plans to save her remaining bonuses in a retirement account from then on until she retires at 65.

Your job is to investigate what happens to each sisters money over time. Calculate how much each sister has in their retirement account for a conservative interest rate of 3.5%, and for an op- timistic interest rate of 8%. That means you need to compute how much Jane would have with a conservative annual interest rate of 3.5%, and how much she would have with an optimistic annual interest rate of 8%. Moreover, you need to compute how much Joan would have with a conservative annual interest rate of 3.5%, and how much she would have with an optimistic annual interest rate of 8%.

Then, compare how each sisters retirement account values compare for the conservative rates, and compare how each sisters retirement account values compare for the optimistic rates.

Furthermore, compare how much interest each sister earned in total for both conservative and optimistic rates.

Lastly, write a letter to the sisters instructing them on what plan you think is best, and why you think so, and be sure to make a case for your position.