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Two people save money in a tax-deferred Individual Retirement Account that earns 8% annually. Person A invests $ 3,000 a year from age 20 to
Two people save money in a tax-deferred Individual Retirement Account that earns 8% annually. Person A invests $ 3,000 a year from age 20 to 29, but then never saves another penny. Person B starts investing $ 3,000 a year at age 30 and saves that same amount annually for the rest of his life. Who has more money in the account at age 65?
a. | Person A | |
b. | Person B | |
c. | They both have the same amount of money. |
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