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” Karabo has decided to start saving for her retirement. Beginning on her 21 st birthday, Karabo plans to invest P2 000 each birthday into an investment account. She will continue this savings program for 10 years and then stop making payments. Her savings will continue to compound for a further 35 years until Ka rabo retires at age 65. Tumelo is Karabo’s twin sister. She also plans to invest P2 000 per annum on each birthday, however she will begin her savings program on her 31 st birthday and will continue the payments until her retirement at 65 years of age (35 y ears later). The twins will use the HOPE Commercial Bank to invest their savings. The bank has quoted an annual savings rate of 6.882% compounded semi – annually. REQUIRED: Determine which twin be financially better – off upon retirement. “
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