Meet Jack and Jill, twenty year-old twins who just graduated from college, Jill immediately upon entering the work force, began contributing $6,000 a year to a stock mutual fund and continued to do so for the next ten years, until she got married
and found more pressing uses for her money. Jack on the other hand married his college sweetheart immediately upon
graduating and soon after started a family and didn’t start investing until he was thirty. Then he too contributed $6,000 a
year to the same stock fund and he continued doing so until he retired at age sixty-five. All told, Jack invested a total of $210,000 while Jill only contributed
$60,000.
a) At age sixty-five, which of the two siblings had the most money assuming they earned an average rate of return equal to 7% a year? (by how much?)
b) If Jill did not stop investing, how much would she have?