Reaching A Financial Goal

Erika and Kitty, Who are twins, just recieved $30,000 each for their 25th Birthday. They both have aspirations to become millionaires. Each plans to make a 5000 annual contribution to her " early retirement fund" on her birthday, beginning a year from today. Erika opened an account with the Safety First Bond Fund, a mutual fund that invests in high quality bonds whose investors have earned 6% per year in the past. Kitty invested in the News Issue Bio Tech Fund, whcih invests in small, newly issued bio Tech stocks and whose investors have earned an average of 20% per year in the fund's relatively short history.

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