Mitch and Bill are both age 75. When Mitch was 22 years old, he began depositing $1300 per year into a savings account. He made deposits for the first 10 years, at which point he was forced to stop making deposits. However, he left his money in the account, where it continued to earn interest for the next 43 years. Bill didn't start saving until he was 45 years old, but for the next 30 years, he made annual deposits of $1300. Assume that both accounts earned an average annual return of 7% (compounded once a year). Complete parts (a) through (d) below. a. How much money does Mitch have in his account at age 75?
Mitch and Bill are both age 75. When Mitch was 22 years old, he began depositing $1300 per year into a savings account. He made deposits for the first 10 years, at which point he was forced to stop making deposits. However, he left his money in the account, where it continued to earn interest for the next 43 years. Bill didn't start saving until he was 45 years old, but for the next 30 years, he made annual deposits of $1300. Assume that both accounts earned an average annual return of 7% (compounded once a year). Complete parts (a) through (d) below. a. How much money does Mitch have in his account at age 75?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Mitch and Bill are both age 75. When Mitch was 22 years old, he began depositing $1300 per year into a savings account. He made deposits for the first 10 years, at which point he was forced to stop making deposits. However, he left his money in the account, where it continued to earn interest for the next 43 years. Bill didn't start saving until he was 45 years old, but for the next 30 years, he made annual deposits of $1300. Assume that both accounts earned an average annual return of 7% (compounded once a year). Complete parts (a) through (d) below.
a. How much money does Mitch have in his account at age 75?
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