Invest now or later? Twins Barbara and Mary are both age 27. Beginning at age 27, Barbara invests $2000 per…
Invest now or later? Twins Barbara and Mary are both age 27. Beginning at age 27, Barbara invests $2000 per year for ten years and then never sets aside another penny. Mary waits 10 years and then invests $2000 per year for the next 30 years. Assuming they both earn 7 percent, how much will each twin have at age 67?
Step 1: Barbara starts investing $2000 annually for ten years and then stops. When Barbara reaches age 37 she has accumulated $[___].
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