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Two friends, Paul and Amanda, are planning for their retirement. Both are 20 years old and plan on retiring in 40 years with $814,500 each.
Two friends, Paul and Amanda, are planning for their retirement. Both are 20 years old and plan on retiring in 40 years with $814,500 each. Amanda plans on making annual deposits beginning in one year (total of 40 deposits) while Paul plans on waiting and then depositing twice as much as Amandas deposits. If both can earn 5 percent per year, how long can Paul wait before he has to start making his deposits? (Round answer to 2 decimal places, e.g. 125. Do not round your intermediate calculations.)
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