Sarah and Mary are twenty year old twins who are attending CCU. Their great aunt dies and leaves each of them $75,000. Sarah decides to spend her entire $75,000 on a snappy new Audi. Mary decides to buy a new Toyota for $30,000 and puts the remaining $45,000 into a tax-deferred investment account which is expected to earn 11% per year.

If both twins retire forty-five years later, how much more for retirement would Mary have than her sister based on this single decision?

Select one:

a. $768,991

b. $ 259,760

c. $ 4,928,861

d. $ 54,950

e. $ 59,863,125