Scenario A: At age 19 you invest $1,500 that earns 8% per year. Scenario B: At age 30 you invest $1,500 that earns 13% 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 (13%) than Scenario A (8%), so it will have more money at age 55. The dollar difference at age 55 between the two scenarios is $7,893.55.

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