Ian wants to 'experience life' and will wait to save until he is 40 years old. Mariah was taught to save even as a teenager and wants to keep up that habit. Starting now, at age 25, each with $250 in their account, Mariah puts $50 away every paycheck. She has found an online bank that pays 5% interest if she leaves the money in the bank. If Ian puts the same $50 in the same savings account but not start until he is 40 years old, how much will each person have in the bank when they are 67 years old? The bank 'compounds' the interest every month.

Answer rating: 100% (QA)

To calculate how much each person will have in the bank when they are 67 years old we need to consid... View the full answer