Bottomline: What is Bob's IRA contributions like after continually contributing $2K annually for 33 yrs? What is Lisa's contributions like after stopping at a certain point, then let whatever the current balance is accrue @ 7% a year?
Both IRA accounts grow at a 7% annual rate. Do not consider any tax effect.
Write a two to three (2-3) paragraph summary in which you:
- Create a chart summarizing the details of the investment for both Bob and Lisa.
- Explain the results in terms of time value of money.