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Problem 1. What is interest rate and how is it determined?

Problem 2; Both Bob and Lisa are married and working adults. They both plan for retirement and consider the annual $2000 contribution a must. First, consider Lisa's saving. She began working at the age of 20 and began making annual contributions at the first of the year beginning with her first year. She makes 13 contributions. She worked til age 32 and then left full-time work to have children and be a stay-at-home mom. She left her IRA invested and plans to begin drawing fro her IRA when she is 65.

Bob, on the other hand, started his IRA at age 32. The first 12 years of his career, he used discretionary income to buy a house, upgrade family cars, take vacations, and pursue his golfing hobby. At age 32 he made his first contribution of $2000 to an IRA and contributed every year til age 65, a total of 33 years/contributions. He plans to retire at age 65 and make withdrawals from his IRA. 

Both IRA accounts grew at 7% annual rate. Write a 2-3 paragraph summary in which you create a side by side chart for Lisa and Bob until age 65 summarizing the details of the investments. Next explain the results in terms of the time value of money.