Question
Which of the following choices will result in a greater future value at age 75? Choice number 1 is to invest $5,000 per year from
Which of the following choices will result in a greater future value at age 75? Choice number 1 is to invest $5,000 per year from ages 20 through 29 (a total of ten investments) into an account and then leave it untouched until you are 75. Choice number 2 is to begin at age 27 and make $5,000 deposits into an investment account every year until you are 75 years old (a total of 49 investments). Each account earns an average of 11%per year. (The investments are end-of-year payments.)Which of the following choices will result in a greater future value at age 75? Choice number 1 is to invest $5,000 per year from ages 20 through 29 (a total of ten investments) into an account and then leave it untouched until you are 75. Choice number 2 is to begin at age 27 and make $5,000 deposits into an investment account every year until you are 75 years old (a total of 49 investments). Each account earns an average of 11%per year. (The investments are end-of-year payments.)Which of the following choices will result in a greater future value at age 75? Choice number 1 is to invest $5,000 per year from ages 20 through 29 (a total of ten investments) into an account and then leave it untouched until you are 75. Choice number 2 is to begin at age 27 and make $5,000 deposits into an investment account every year until you are 75 years old (a total of 49 investments). Each account earns an average of 11%per year. (The investments are end-of-year payments.)
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