What rate of return will Elizabeth need to earn on her account to have an equal balance to Ben at age 65 if she saves $3,000/yr.?

Select one:

a.

Approximately 7.6%

b.

Approximately 8%

c.

Approximately 9.3%

d.

Approximately 10.9%

e.

Elizabeths balance can never catch up to Bens no matter the return %

2.

Ignoring the $3,000 of savings by Elizabeth in the previous question and assuming that Elizabeth earns 8% on her investments, what amount will she have to save each year to equal Bens balance at age 65?

Select one:

a.

Approximately $2,729

b.

Approximately $3,529

c.

Approximately $3,829

d.

Approximately $4,429

e.

Elizabeths balance can never catch up to Bens no matter the annual savings amount