6. (3 points) Suppose you start a savings plan in which you save $500 each year...

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6. (3 points) Suppose you start a savings plan in which you save $500 each year for 16 years. You make your first payment at age 22 and then leave the accumulated sum in the savings plan (and make no more annual payments) until you reach age 65, at which time you withdraw the total accumulated amount. The average annual interest rate you'll earn on this savings plan is 10%. A friend of yours (exactly your age) from Minnesota State University waits 10 years to start her savings plan. (That is, she is 32 years old.) She decides to save $1,500 each year in an account earning interest at the rate of 10% per year. She will make these annual payments until she is 65 years old, at which time she will withdraw the total accumulated amount. Determine by trial and error how old you will be when your friend's accumulated savings amount (including interest) exceeds yours. At the age, what are your and your friend's accumulated savings amounts? 6. (3 points) Suppose you start a savings plan in which you save $500 each year for 16 years. You make your first payment at age 22 and then leave the accumulated sum in the savings plan (and make no more annual payments) until you reach age 65, at which time you withdraw the total accumulated amount. The average annual interest rate you'll earn on this savings plan is 10%. A friend of yours (exactly your age) from Minnesota State University waits 10 years to start her savings plan. (That is, she is 32 years old.) She decides to save $1,500 each year in an account earning interest at the rate of 10% per year. She will make these annual payments until she is 65 years old, at which time she will withdraw the total accumulated amount. Determine by trial and error how old you will be when your friend's accumulated savings amount (including interest) exceeds yours. At the age, what are your and your friend's accumulated savings amounts? 6. (3 points) Suppose you start a savings plan in which you save $500 each year for 16 years. You make your first payment at age 22 and then leave the accumulated sum in the savings plan (and make no more annual payments) until you reach age 65, at which time you withdraw the total accumulated amount. The average annual interest rate you'll earn on this savings plan is 10%. A friend of yours (exactly your age) from Minnesota State University waits 10 years to start her savings plan. (That is, she is 32 years old.) She decides to save $1,500 each year in an account earning interest at the rate of 10% per year. She will make these annual payments until she is 65 years old, at which time she will withdraw the total accumulated amount. Determine by trial and error how old you will be when your friend's accumulated savings amount (including interest) exceeds yours. At the age, what are your and your friend's accumulated savings amounts? 6. (3 points) Suppose you start a savings plan in which you save $500 each year for 16 years. You make your first payment at age 22 and then leave the accumulated sum in the savings plan (and make no more annual payments) until you reach age 65, at which time you withdraw the total accumulated amount. The average annual interest rate you'll earn on this savings plan is 10%. A friend of yours (exactly your age) from Minnesota State University waits 10 years to start her savings plan. (That is, she is 32 years old.) She decides to save $1,500 each year in an account earning interest at the rate of 10% per year. She will make these annual payments until she is 65 years old, at which time she will withdraw the total accumulated amount. Determine by trial and error how old you will be when your friend's accumulated savings amount (including interest) exceeds yours. At the age, what are your and your friend's accumulated savings amounts?

Answer rating: 100% (QA)

You Age Amount Int Total 22 50000 5000 55000 23 105000 10500 115500 24 165500 16550 182050 25 232050 23205 255255 26 305255 30526 335781 27 385781 385... View the full answer