Sue and Neal are twins. She invests $5,000 at 7 percent when she is 25 years old, Neal invests $5,000 at 7 percent when he is 30 years old. Both investments compound interest annually. Both Sue and Neal retire at age 60. Which one of the following statements is correct assuming that neither Sue nor Neal has withdrawn any money from their accounts? a. Sue will have less money when she retires than Nealb. Neal will earn more interest on interest than Suec. Neal will earn more compound interest than Sued. If both Sue and Neal wait to age 70 to retire, than they will have equal amounts of savingse. Sue will have more money than Neal as long as they retire at the same time

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Mallory Ritter

4 October, 18:52

Sue and Neal are twins. She invests $5,000 at 7 percent when she is 25 years old, Neal invests $5,000 at 7 percent when he is 30 years old. Both investments compound interest annually. Both Sue and Neal retire at age 60. Which one of the following statements is correct assuming that neither Sue nor Neal has withdrawn any money from their accounts? a. Sue will have less money when she retires than Nealb. Neal will earn more interest on interest than Suec. Neal will earn more compound interest than Sued. If both Sue and Neal wait to age 70 to retire, than they will have equal amounts of savingse. Sue will have more money than Neal as long as they retire at the same time

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Layton · Answer 1

The answer is Sue will have more money than Neal as long as the retired at the same time the equation for Sue is 5,000 (1+.07) ^45 which equals $105,012.26 and the equation for Neal is 5000 (1+.07) ^40 and equals $74,872.29