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Two siblings invest in two separate accounts planning for retirement. Their investment strategies and accounts are pretty different. Alice invests a lump sum of $120,000
Two siblings invest in two separate accounts planning for retirement. Their investment strategies and accounts are pretty different. Alice invests a lump sum of $120,000 into account A, which pays 2.18% compounded daily. Bob invests into account B, which is an annuity account. He deposits $200 each month info an account paying 3.8%. After 50 years the siblings both retire on the same day and go out to celebrate. They agree that whoever has the most in savings should buy a nice meal for the other equal to the difference in the two accounts. Bob is buying the dinner in the end and but much will it cost? (Hint: A nice Kobe steak can go for around \$1, 000 dollars)
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