What is a better strategy: saving little but starting early or saving more but starting later ? We will try to answer this question through the following examples. a. Albert deposits $10 every day for 30 years into an account earning interest at the rate of 5.11%/year compounded daily. What is the balance in the account after 30 years ? b. Patrick decides to wait 15 years before he starts but to double the amounts of his deposits to compensate for his late start. He deposits $20 every day for 15 years into the same type of account earning interest at the rate of 5.11%/year compounded daily. What is the balance in the account after 15 years ? c. What do you conclude ?
Problem 10:
What is a better strategy: saving little but starting early or saving more but starting later ? We will try to answer this question through the following examples.
a. Albert deposits $10 every day for 30 years into an account earning interest at the rate of 5.11%/year compounded daily. What is the balance in the account after 30 years ?
b. Patrick decides to wait 15 years before he starts but to double the amounts of his deposits to compensate for his late start. He deposits $20 every day for 15 years into the same type of account earning interest at the rate of 5.11%/year compounded daily. What is the balance in the account after 15 years ?
c. What do you conclude ?
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
