Scenario A: At age 19 you invest $1,500 that earns 8 percent per year. Scenario B: At age 30 you invest $1,500 that earns 13 percent per year. Under which scenario would you have more money at age 55 and what is the dollar difference at age 55 between the two scenarios?

Question

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Scenario B earns a higher interest rate, so it will have more money at age 55. The dollar difference between the two scenarios is $7,893.55.

Scenario A: at Age 19 You Invest $1,500 That Earns