What would be the yearly amount bella had been saving

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Reference no: EM133433852

Question

Emma started saving $5,000 yearly for retirement at the age of 35 for 30 years till she is

65.

Bella started saving for retirement at the age of 25, and she has been saving an equal yearly amount for 25 years. After 25 years, she will stop saving and will leave the money grow in the account for next 15 years till she is 65.

Both Emma and Bella receive 7% annual compound interest from their retirement avings, and they end up having the same amount in their accounts when they are 65.

What would be the yearly amount Bella had been saving for 25 years?
Both Bella and Emma need additional 300,000 at the retirement age. If you are a financial advisor, what would be your advice for them?

Reference no: EM133433852

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