Considering two investment options.

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Reference no: EM131519079

You are 20 years old and considering two investment options. The first option would be to contribute $2,000 into an IRA for the next 10 years and then stop. The second option would be to buy a new car, finance it over 10 years and then start contributing to an IRA until retirement. What would be the value of the two options at age 65, assuming a 10% investment return? Which option would be the largest value at age 65?

Part A—Answer to First Option: _______________

Part B—Answer to Second Option: _______________

Better option is to: _______________

Reference no: EM131519079

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