Future value. Jack and Jill are saving for a rainy day and decide to put $45 away in their local bank every year for the next 25 years. The local Up-the-Hill Bank will pay them 10% on their account. a. If Jack and Jill put the money in the account faithfully at the end of every year, how much will they have in it at the end of 25 years? b. Unfortunately, Jack had an accident in which he sustained head injuries after only 10 years of savings. The medical bill has come to $700. Is there enough in the rainy-day fund to cover it? ..... a. If Jack and Jill put the money in the account faithfully at the end of every year, how much will they have in it at the end of 25 years? (Round to the nearest cent.)
Future value. Jack and Jill are saving for a rainy day and decide to put $45 away in their local bank every year for the next 25 years. The local Up-the-Hill Bank will pay them 10% on their account. a. If Jack and Jill put the money in the account faithfully at the end of every year, how much will they have in it at the end of 25 years? b. Unfortunately, Jack had an accident in which he sustained head injuries after only 10 years of savings. The medical bill has come to $700. Is there enough in the rainy-day fund to cover it? ..... a. If Jack and Jill put the money in the account faithfully at the end of every year, how much will they have in it at the end of 25 years? (Round to the nearest cent.)
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 43P
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Question
![**Future Value**
Jack and Jill are saving for a rainy day and decide to put $45 away in their local bank every year for the next 25 years. The local Up-the-Hill Bank will pay them 10% on their account.
a. If Jack and Jill put the money in the account faithfully at the end of every year, how much will they have in it at the end of 25 years?
b. Unfortunately, Jack had an accident in which he sustained head injuries after only 10 years of savings. The medical bill has come to $700. Is there enough in the rainy-day fund to cover it?
---
a. If Jack and Jill put the money in the account faithfully at the end of every year, how much will they have in it at the end of 25 years?
$ [ ] (Round to the nearest cent.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd8c403c1-73da-4878-97dd-7583351688c0%2F8bdfec9c-7d3e-43a4-9739-e0b25156c53c%2Fn0kwdcy_processed.png&w=3840&q=75)
Transcribed Image Text:**Future Value**
Jack and Jill are saving for a rainy day and decide to put $45 away in their local bank every year for the next 25 years. The local Up-the-Hill Bank will pay them 10% on their account.
a. If Jack and Jill put the money in the account faithfully at the end of every year, how much will they have in it at the end of 25 years?
b. Unfortunately, Jack had an accident in which he sustained head injuries after only 10 years of savings. The medical bill has come to $700. Is there enough in the rainy-day fund to cover it?
---
a. If Jack and Jill put the money in the account faithfully at the end of every year, how much will they have in it at the end of 25 years?
$ [ ] (Round to the nearest cent.)
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