Reference no: EM132871730

Question - Bella and Marie are twins and both of them are turning 25 today. Bella is hardworking and got a job immediately after graduation. As a reward, the father began putting $4,000 per year into a trust fund for Bella on her 20th birthday, and he just made the sixth payment into the trust today on Bella's birthday. The father will continue to put in $4,000 per year until a 41st and final payment is made on Bella's 60th birthday.

?The father did not do the same for Marie because she refused to look for a job after graduation and was just sitting at home over the past 5 years. However, Marie has changed and got her first job today. So, the father decided to set up a trust fund for Marie and start making his first annual deposit today. He will continue to make the same annual deposit each year for Marie until Marie turns 60 also, when the 36th and final payment will be made. If both trust funds earn an annual return of 7%, how much must the father put into Marie's trust today and each subsequent year to enable her to have the same retirement nest egg as Bella after the last payment is made on their 60th birthday?