Jasmine is saving for her retirement and contributes $1000 to her RRSP at the end of every year for 40 years. Jordan is also saving for his retirement and contributes $950 to his RRSP at the beginning of every year for 40 years.

a) If the annual effective interest rate is 7%, who has more money at the end of 40 years, and by how much?

b) If they have the same amount of money after 40 years, what is the annual effective interest rate?