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You invest $2,900 in stock A and $2,900 in stock B. If you earn 14 percent on stock A and 6 percent on stock B
You invest $2,900 in stock A and $2,900 in stock B. If you earn 14 percent on stock A and 6 percent on stock B and hold each security for 21 years, what are the terminal values for each investment? Round your answers to the nearest cent.
Stock A: $
Stock B: $
If you continue to hold each security and earn the same returns for 26 years, how much more will stock A generate than stock B over the entire time period? (When you invest for retirement, you should think about the impact of returns over time.) Round your answer to the nearest cent.
$
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