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Jean invests $1,000 into her employer's retirement plan on 31st birthday; also she continues to make annual $1,000 payments for 10 years. So her total contribution (principal) is $10,000. Jean then stops making payments into her plan plus keeps her money in the savings plan untouched for 25 more years. Doug creates putting money aside on his 41st birthday as he deposits $1,000, and he continues these payments until he gets to be 65 years old. Doug's contributed principal amounts to $25,000 over this period of time. If Jean's and Doug's retirement plans earn interest of 6% per year, illustrate how much will they have accumulated principal plus interest when they reach 65 years old? What is the moral of this situation?
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