Assume Two Investments Can Earn 6

Multiple Choice

Assume two investments can earn 6.4% compounded annually. Determine how much larger an investment with consistent annual contributions of $3,000 be over 20 years, versus an investment where no payments are made for the first 5 years and annual contributions of $4,000 per year for the remaining 15 years.

A) The difference will be $18,230.64
B) The difference will be $19,230.64
C) The difference will be $20,230.64
D) The difference will be $21,230.64
E) The difference will be $22,230.64