Answered

Discover answers to your most pressing questions at Westonci.ca, the ultimate Q&A platform that connects you with expert solutions. Explore our Q&A platform to find in-depth answers from a wide range of experts in different fields. Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately.

Melvin begins his retirement fund at age 30, depositing $1,000 per month until age 50. Cindy begins her retirement fund at age 20, depositing the same $1,000 per month amount until age 50. Both Melvin and Cindy earn 5 percent annual interest on their funds, and there are no tax considerations in this problem. Based on the provided information :____________
a) and assuming they retire at age 50, Cindy will have less than 50 percent more than Melvin
b) and assuming they retire at age 50. Cindy will have exactly 50 percent more than Melvin.
c) and assuming they both retire at age 60. Cindy will have less than Melvin.
d) the difference between the two will get larger with higher inflation
e) and assuming they retire at age 50. Cindy will have over 50 percent more than Melvin.

Sagot :

Answer: D. and assuming they retire at age 50, Cindy will have over 50% more than Melvin

Explanation:

Since Melvin begins his retirement fund at age 30, depositing $1,000 per month until age 50 while Cindy begins her retirement fund at age 20, depositing the same $1,000 per month amount until age 50 with a 5% annual interest on their funds, then we can deduce that if they retire at age 50, Cindy will have over 50% more than Melvin.

Therefore, the correct option is D.

Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. We appreciate your visit. Our platform is always here to offer accurate and reliable answers. Return anytime. Get the answers you need at Westonci.ca. Stay informed with our latest expert advice.