Question
Today is Ashleys 13th birthday. To prepare for retirement, at the start of each week she plans on depositing $75 into a savings account that
Today is Ashleys 13th birthday. To prepare for retirement, at the start of each week she plans on depositing $75 into a savings account that earns 8.5% compounded weekly. Her first deposit will occur today, and she will stop making deposits when she turns 52 (i.e., she will not make a deposit on her 52nd birthday). She will then leave the money invested for the next twenty-three years until she retires on her 75th birthday. Assume that she will continue to earn the same 8.5% compounded weekly on her investment. Ashleys twin sister, Mary-Kate, also plans on retiring on her 75th birthday. However, she plans on waiting until her 21st birthday to deposit money each month into a savings account that earns 6.5% compounded monthly. Her first deposit will occur on her 21st birthday, and she will stop making deposits when she turns 60 (i.e., she will not make a deposit on her 60th birthday). Her deposits will occur at the beginning of each month. Assume that she will continue to earn the same 6.5% compounded monthly on her investment. How much money must Mary-Kate invest each month in order to have the same amount saved for retirement as Ashley?
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