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What were the values of each plan when bruce and sharon

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Problem: Bruce and Sharon are at the same age. They both had pension plans with their places of employment. Sharon started contributing $2500 at the end of each year at the age 25. Bruce did not start making regular contributions until age 40, but at that point he contributed $6500 per year. Sharon's plan earned and annual rate of 4.55% compounded quarterly whereas Bruce's plan earned an annual rate of 4.85% compounded semi-annually.

Required:

Question 1: What were the values of each plan when Bruce and Sharon are both 65 years old?

Question 2: How much did Bruce and Sharon contribute to their respective plans?

Question 3: How much interest did each of the earn?

Question 4: Compare their rates of return.

Reference no: EM132423097

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