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John and Jane are twins. Jane invests $ 5 , 0 0 0 at age 2 0 and earns 5 % EAR. John invests $

John and Jane are twins. Jane invests $

5, 000

at age

20

and earns

5 %

EAR. John invests $

10, 000

age

40

and earns

5 %

EAR. Assuming that John and Jane do not have any other savings, no matter

how long they live, John will never have as much money as Jane. Explain why?

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