Pat and Jaimie Are Twins

question 253

Multiple Choice

Pat and Jaimie are twins. They will both invest $2,500 on their 20^th birthday. Pat's money will accumulate at 14% compounded annually for 35 years until their 55^th birthday. Being less of a risk taker Jamie will select an investment that will provide a return of only 8.5% compounded annually. If when they reach age 055, Jamie decides to leave the money growing at 8.5% how many more years will it take for Jamie's investment to reach the value that Pat's will be at age 55?

• A) 9.3 years
• B) 21.2 years
• C) 14.3 years
• D) 27.4 years
• E) 18.4 years

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