When Joe and Sarah graduate from college, each expects to work a total of 45 years. Joe begins saving for retirement immediately. He plans to deposit

$525

at the end of each quarter into an account paying

8.2%

interest, compounded quarterly, for

12

years. He will then leave his balance in the account, earning the same interest rate, but make no further deposits for

33

years. Sarah plans to save nothing during the first

12

years and then begin depositing

$525

at the end of each quarter in an account paying

8.2%

interest, compounded quarterly for

33

years. Complete parts (a) through (e) below.

a. Without doing any calculations, predict which one will have the most in his or her retirement account after 45 years. Then test your prediction by answering the following questions. Choose the correct answer below.

A.Joe will have more in his account after 45 years. Sarah contributed more money overall, but Joe was earning

8.2%

interest per quarter for

33

years.

B.Both Joe and Sarah will have the same amount of money in their accounts because they were both earning

8.2%

interest on their money for

33

years.

C.Sarah will have more in her account after 45 years. Joe earned interest for

12

more years than Sarah, but Sarah contributed monthly payments for a lot longer than Joe.

D.

Sarah will have more in her account after 45 years. Sarah contributed more overall, so she will have more money in her account.

b. How much will Joe contribute to his retirement account?

$nothing

(Round to the nearest dollar.)

c. How much will be in Joe's account after 45 years?

$nothing

(Do not round until the final answer. Then round to the nearest dollar.)

d. How much will Sarah contribute to her retirement account?

$nothing

(Round to the nearest dollar.)

e. How much will be in Sarah's account after 45 years?

$nothing

(Do not round until the final answer. Then round to the nearest dollar.)