From age 30 to age 40, Jessica deposited $100 at the end of each month into a tax-free retirement account. She made no withdrawals or further contributions until age 65. Alex made deposits of $350 into his tax-free retirement account from age 40 to age 65. If both accounts earned interest at the rate of 5%/year compounded monthly, who ends up with a bigger nest egg upon reaching the age of 65, Jessica or Alex?

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The Answer of From age 30 to age 40, Jessica deposited $100 at the end of each month into a tax-free retirement account. She made no withdrawals or further contributions until age 65. Alex made deposits of $350 into his tax-free retirement account from age 40 to age 65. If both accounts earned interest at the rate of 5%/year compounded monthly, who ends up with a bigger nest egg upon reaching the age of 65, Jessica or Alex?

From Age 30 to Age 40, Jessica Deposited $100 at the End