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Question - Saving for retirement-future value of an annuity - Selma and Patty Bouvier are twins and both work at the Springfield DMV. Selma and Patty Bouvier decide to save for retirement, which is 35 years away. They'll both receive an annual return of 6 percent on their investment over the next 35 years. Selma invests $1.700 per year at the end of each year only for the first 10 years of the 35-year period-for a total of $17,000 saved. Patty doesn't start saving for 10 years and then saves $1,700 per year at the end of each year for the remaining 25 years-tor a total of $42,500 saved. How much will each of them have when they retire?
a. How much will Selma have when she retires?
b. How much will Patty have when she retires?
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