Retirement time and you begin to review the two accounts you and your spouse have participated in at work. Your wife's account has $1.3M. You are ashamed to open your account to a measly $800,000. You both made the same $300 monthly payments and have been participating in the retirement accounts for the last 40 years. What was the growth rate difference between the two retirement accounts?
A) 16.83%
B) 0.0168%
C) 168.3%
D) 1.68%
E) None of the answers are correct
D) 1.68%
Explanation: Wife
N = 40 * 12 = 480
PMT = -300
FV = 1,300,00
CPT I/Y = .073 * 12 = 8.74
Husband
N = 40 * 12 = 480
PMT = -300
FV = 800,000
CPT I/Y = .0588 * 12 = 7.06
Find the difference = 1.68
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