Christie received a total of $1025 from her graduation party. She wants to save this money for a vacation 10 years later. She puts the money into a savings account (Plan A) at a 6% simple interest rate. After the 10 years are over she has accumulated $1640 which covers her vacation expenses. After doing a little research she realizes that she could have earned more money had she invested the money into a different savings plan (Plan B) of 7% interest compounded weekly. How much would Christie have had to save after graduation in Plan B to accumulate the same amount of money that she received in Plan A after 10 years? Round your answer to the nearest cent.
Christie received a total of $1025 from her graduation party. She wants to save this money for a vacation 10 years later. She puts the money into a savings account (Plan A) at a 6% simple interest rate. After the 10 years are over she has accumulated $1640 which covers her vacation expenses. After doing a little research she realizes that she could have earned more money had she invested the money into a different savings plan (Plan B) of 7% interest compounded weekly. How much would Christie have had to save after graduation in Plan B to accumulate the same amount of money that she received in Plan A after 10 years? Round your answer to the nearest cent.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Christie received a total of $1025 from her graduation party. She wants
to save this money for a vacation 10 years later. She puts the money into a
savings account (Plan A) at a 6% simple interest rate. After the 10 years are over
she has accumulated $1640 which covers her vacation expenses. After doing a
little research she realizes that she could have earned more money had she
invested the money into a different savings plan (Plan B) of 7% interest
compounded weekly. How much would Christie have had to save after
graduation in Plan B to accumulate the same amount of money that she received
in Plan A after 10 years? Round your answer to the nearest cent.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education