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:

Seismic Waves

Waves of energy that travel through the Earth's layers, produced by earthquakes or other earth movements, used to study the interior of the Earth.

Epicenter

The point on the Earth's surface that is directly above the focus of an earthquake, where the seismic waves are felt most strongly.

Hypocenter

The point within the Earth where an earthquake originates, also known as the focus of the earthquake.

Normal Fault

A type of fault where the hanging wall moves downward relative to the footwall due to extensional forces, common in divergent plate boundaries.