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Amy and Anna are of the same age. Amy invests $4,000 at 6 percent at...

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Finance

Amy and Anna are of the same age. Amy invests $4,000 at 6 percent at age 25. Anna invests the same amount at the same interest rate at age 30. Both investments compound interest annually. Both of them retire at age 60 and neither adds nor withdraws funds prior to retirement.

Pick the correct statement regarding this from below.

  • Amy will have less money when she retires than Anna.

  • Anna will earn more interest on interest than Amy.

  • Anna will earn more compound interest than Amy.

  • If both Amy and Anna wait to age 70 to retire they will have equal amounts of savings.

  • Amy will have more money than Anna at any age.

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