How old will each be when she becomes a millionaire

Reference no: EM13304318

Erika and Kitty, who are twins, just received $30,000 each for their 25th birthday. They both have aspirations to become millionaires. Each plans to make a $5,000 annual contribution to her "early retirement fund" on her birthday, beginning a year from today. Erika opened an account with the safety First Bond Fund, a mutual fund that invests in high-quality bonds whose investors have earned 6% per year in the past. Kitty invested in the New Issue Bio-Tech Fund, which invests in small, newly issued bio-tech stocks and whose investors have earned an average of 20 % per year in the fund's short history.

If the two women's funds earn the same returns in the future as in the past, how old will each be when she becomes a millionaire?

Reference no: EM13304318

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