Worker a Annually Invests $1,000 in an IRA for Nine

question 28

Essay

Worker A annually invests $1,000 in an IRA for nine years (ages 27 through 35) and never makes another contribution. Worker B annually invests $1,000 in an IRA for thirty years (ages 36 through 65). Which worker will have more in his or her account when he or she retires if they both earn 8 percent on their investments

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Definitions:

Bar Exam

A professional examination that must be passed to legally practice law in a given jurisdiction.

Corporate Stock

Ownership units in a corporation, represented by shares that can be bought, sold, or traded.

Shareholder

An owner of shares in a company or corporation, giving them certain rights and potential financial benefits.

Corporation

A legal entity recognized by law as separate from its owners, with its own rights and liabilities.