Question

shadesha invests $24,000 at age 27. at the age 31 jerome invests $2000 annually until retirement both invest at 7% compounded annually to plan to retire at 65 who has more money for retirement

Answer 1

Applying the compounded interest formula $FV_{N}=PV(1+r)^{N}$ we can write that Shadesha will earn for the retirement $FV_{38} = 24000 (1+0.07)^{38} = 313,902.513879$
Applying annuity formula, Jerome will earn $FV_{34}=2000( \frac{(1+0.07)^{34}-1 }{0.07}) = 256,517. 529629$
Shadesha will have more money