Sophie and her brother Jack are discussing different strategies for saving for retirement. Sophie thinks it a good idea to start saving for retirement right away, as soon as she starts her career. She plans on saving enough money throughout each year to invest $10,000 into a retirement account that pays 8% interest, compounded annually. She will do this at the end of each year for the length of a 30 year career. Jack thinks it’s better to wait for retirement so he can spend more money on traveling and living life when he first starts working. He plans on waiting to save until the second half of his 30 year career. Starting in his 16th year of employment he will invest $20,000 each year into a retirement account that pays 8% interest, compounded annually. He will do this at the end of each year for the last 15 years of his career. Who invests more money into their retirement account during their career, Sophie or Jack? What will be the value of Sophie’s account when she retires? Show an
Unitary Method
The word “unitary” comes from the word “unit”, which means a single and complete entity. In this method, we find the value of a unit product from the given number of products, and then we solve for the other number of products.
Speed, Time, and Distance
Imagine you and 3 of your friends are planning to go to the playground at 6 in the evening. Your house is one mile away from the playground and one of your friends named Jim must start at 5 pm to reach the playground by walk. The other two friends are 3 miles away.
Profit and Loss
The amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item.
Units and Measurements
Measurements and comparisons are the foundation of science and engineering. We, therefore, need rules that tell us how things are measured and compared. For these measurements and comparisons, we perform certain experiments, and we will need the experiments to set up the devices.
Sophie and her brother Jack are discussing different strategies for saving for retirement.
Sophie thinks it a good idea to start saving for retirement right away, as soon as she starts her career. She plans on saving enough money throughout each year to invest $10,000 into a retirement account that pays 8% interest, compounded annually. She will do this at the end of each year for the length of a 30 year career.
Jack thinks it’s better to wait for retirement so he can spend more money on traveling and living life when he first starts working. He plans on waiting to save until the second half of his 30 year career. Starting in his 16th year of employment he will invest $20,000 each year into a retirement account that pays 8% interest, compounded annually. He will do this at the end of each year for the last 15 years of his career.
- Who invests more money into their retirement account during their career, Sophie or Jack?
- What will be the value of Sophie’s account when she retires? Show an algebraic solution below:
- What will be the value of Jack’s retirement account when he retires? Show an algebraic solution below:
- How much interest did each of them earn in their retirement accounts?
- Who has a better retirement plan? Why?
- Complete the 1st tab of the Google Spreadsheet attached with this assignment showing the details of Sophie’s and Jack’s retirement plans.
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