Each year on his childs birthday, Ben put $100 into a savings account that earns 5% annually;

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Each year on his child’s birthday, Ben put $100 into a savings account that earns 5% annually;

a. How much would the child have at age 65?

b. What would the outcome have been had Ben started the savings account on the day of the child’s birth vs. the end of the child’s first year?

c. What accounts for the difference?

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Personal Finance Building Your Future

ISBN: 978-0073530659

1st edition

Authors: Robert B. Walker, Kristy P. Walker

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Question Posted: Apr 18, 2018 09:50 AM

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Each year on his childs birthday, Ben put $100 into a savings account that earns 5% annually;

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Personal Finance Building Your Future

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